Posco Chemical (Korea) Market Value
| 003670 Stock | 183,100 2,900 1.61% |
| Symbol | Posco |
Posco Chemical 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Posco Chemical's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Posco Chemical.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Posco Chemical on October 30, 2024 and sell it all today you would earn a total of 0.00 from holding Posco Chemical Co or generate 0.0% return on investment in Posco Chemical over 30 days. Posco Chemical is related to or competes with Busan Industrial, Finebesteel, Shinhan Inverse, Hyundai Heavy, and Hanwha Aerospace. More
Posco Chemical Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Posco Chemical's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Posco Chemical Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 24.42 | |||
| Value At Risk | (6.09) | |||
| Potential Upside | 7.05 |
Posco Chemical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Posco Chemical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Posco Chemical's standard deviation. In reality, there are many statistical measures that can use Posco Chemical historical prices to predict the future Posco Chemical's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.75) | |||
| Treynor Ratio | (0.46) |
Posco Chemical Backtested Returns
Posco Chemical maintains Sharpe Ratio (i.e., Efficiency) of -0.12, which implies the firm had a -0.12% return per unit of risk over the last 3 months. Posco Chemical exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Posco Chemical's Variance of 16.79, coefficient of variation of (3,347), and Risk Adjusted Performance of (0.01) to confirm the risk estimate we provide. The company holds a Beta of 0.28, which implies not very significant fluctuations relative to the market. As returns on the market increase, Posco Chemical's returns are expected to increase less than the market. However, during the bear market, the loss of holding Posco Chemical is expected to be smaller as well. At this point, Posco Chemical has a negative expected return of -0.44%. Please make sure to check Posco Chemical's treynor ratio, value at risk, and the relationship between the total risk alpha and maximum drawdown , to decide if Posco Chemical performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.65 |
Very good reverse predictability
Posco Chemical Co has very good reverse predictability. Overlapping area represents the amount of predictability between Posco Chemical time series from 30th of October 2024 to 14th of November 2024 and 14th of November 2024 to 29th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Posco Chemical price movement. The serial correlation of -0.65 indicates that roughly 65.0% of current Posco Chemical price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.65 | |
| Spearman Rank Test | -0.45 | |
| Residual Average | 0.0 | |
| Price Variance | 43.4 M |
Posco Chemical lagged returns against current returns
Autocorrelation, which is Posco Chemical stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Posco Chemical's stock expected returns. We can calculate the autocorrelation of Posco Chemical returns to help us make a trade decision. For example, suppose you find that Posco Chemical has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Posco Chemical regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Posco Chemical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Posco Chemical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Posco Chemical stock over time.
Current vs Lagged Prices |
| Timeline |
Posco Chemical Lagged Returns
When evaluating Posco Chemical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Posco Chemical stock have on its future price. Posco Chemical autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Posco Chemical autocorrelation shows the relationship between Posco Chemical stock current value and its past values and can show if there is a momentum factor associated with investing in Posco Chemical Co.
Regressed Prices |
| Timeline |
Pair Trading with Posco Chemical
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Posco Chemical position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Posco Chemical will appreciate offsetting losses from the drop in the long position's value.Moving together with Posco Stock
Moving against Posco Stock
The ability to find closely correlated positions to Posco Chemical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Posco Chemical when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Posco Chemical - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Posco Chemical Co to buy it.
The correlation of Posco Chemical is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Posco Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Posco Chemical moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Posco Chemical can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Posco Stock
Posco Chemical financial ratios help investors to determine whether Posco Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Posco with respect to the benefits of owning Posco Chemical security.