Songwon Industrial (Korea) Market Value
| 004430 Stock | 10,430 40.00 0.38% |
| Symbol | Songwon |
Songwon Industrial '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 Songwon Industrial'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 Songwon Industrial.
| 11/03/2024 |
| 12/03/2024 |
If you would invest 0.00 in Songwon Industrial on November 3, 2024 and sell it all today you would earn a total of 0.00 from holding Songwon Industrial Co or generate 0.0% return on investment in Songwon Industrial over 30 days. Songwon Industrial is related to or competes with AptaBio Therapeutics, Daewoo SBI, Dream Security, Microfriend, Innometry, and Jahwa Electron. More
Songwon Industrial 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 Songwon Industrial'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 Songwon Industrial Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 18.99 | |||
| Value At Risk | (4.98) | |||
| Potential Upside | 6.72 |
Songwon Industrial Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Songwon Industrial's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Songwon Industrial's standard deviation. In reality, there are many statistical measures that can use Songwon Industrial historical prices to predict the future Songwon Industrial's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.64) | |||
| Treynor Ratio | (0.76) |
Songwon Industrial Backtested Returns
Songwon Industrial owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0038, which indicates the firm had a -0.0038% return per unit of risk over the last 3 months. Songwon Industrial Co exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Songwon Industrial's Risk Adjusted Performance of (0.02), coefficient of variation of (2,534), and Variance of 11.15 to confirm the risk estimate we provide. The entity has a beta of 0.19, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Songwon Industrial's returns are expected to increase less than the market. However, during the bear market, the loss of holding Songwon Industrial is expected to be smaller as well. At this point, Songwon Industrial has a negative expected return of -0.0131%. Please make sure to validate Songwon Industrial's jensen alpha, treynor ratio, and the relationship between the standard deviation and total risk alpha , to decide if Songwon Industrial performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.41 |
Average predictability
Songwon Industrial Co has average predictability. Overlapping area represents the amount of predictability between Songwon Industrial time series from 3rd of November 2024 to 18th of November 2024 and 18th of November 2024 to 3rd of December 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 Songwon Industrial price movement. The serial correlation of 0.41 indicates that just about 41.0% of current Songwon Industrial price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.41 | |
| Spearman Rank Test | 0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 39.8 K |
Songwon Industrial lagged returns against current returns
Autocorrelation, which is Songwon Industrial 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 Songwon Industrial's stock expected returns. We can calculate the autocorrelation of Songwon Industrial returns to help us make a trade decision. For example, suppose you find that Songwon Industrial 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 |
Songwon Industrial 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 Songwon Industrial stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Songwon Industrial stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Songwon Industrial stock over time.
Current vs Lagged Prices |
| Timeline |
Songwon Industrial Lagged Returns
When evaluating Songwon Industrial's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Songwon Industrial stock have on its future price. Songwon Industrial 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, Songwon Industrial autocorrelation shows the relationship between Songwon Industrial stock current value and its past values and can show if there is a momentum factor associated with investing in Songwon Industrial Co.
Regressed Prices |
| Timeline |
Pair Trading with Songwon Industrial
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 Songwon Industrial 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 Songwon Industrial will appreciate offsetting losses from the drop in the long position's value.Moving together with Songwon Stock
The ability to find closely correlated positions to Songwon Industrial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Songwon Industrial 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 Songwon Industrial - 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 Songwon Industrial Co to buy it.
The correlation of Songwon Industrial 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 Songwon Industrial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Songwon Industrial 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 Songwon Industrial 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 Songwon Stock
Songwon Industrial financial ratios help investors to determine whether Songwon 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 Songwon with respect to the benefits of owning Songwon Industrial security.