Union Materials (Korea) Market Value
| 047400 Stock | 2,105 50.00 2.32% |
| Symbol | Union |
Union Materials '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 Union Materials' 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 Union Materials.
| 12/13/2024 |
| 03/13/2025 |
If you would invest 0.00 in Union Materials on December 13, 2024 and sell it all today you would earn a total of 0.00 from holding Union Materials Corp or generate 0.0% return on investment in Union Materials over 90 days. Union Materials is related to or competes with Digital Multimedia, Barunson Entertainment, Hannong Chemicals, Daejung Chemicals, Pan Entertainment, Hanjin Transportation, and Kaonmedia. More
Union Materials 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 Union Materials' 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 Union Materials Corp upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | 0.0018 | |||
| Maximum Drawdown | 19.15 | |||
| Value At Risk | (4.18) | |||
| Potential Upside | 4.07 |
Union Materials Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Union Materials' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Union Materials' standard deviation. In reality, there are many statistical measures that can use Union Materials historical prices to predict the future Union Materials' volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.1) | |||
| Total Risk Alpha | 0.3458 | |||
| Treynor Ratio | (0.61) |
Union Materials Corp Backtested Returns
Union Materials Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0382, which indicates the firm had a -0.0382 % return per unit of risk over the last 3 months. Union Materials Corp exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Union Materials' Variance of 9.39, risk adjusted performance of (0.02), and Coefficient Of Variation of (2,757) to confirm the risk estimate we provide. The entity has a beta of 0.2, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Union Materials' returns are expected to increase less than the market. However, during the bear market, the loss of holding Union Materials is expected to be smaller as well. At this point, Union Materials Corp has a negative expected return of -0.1%. Please make sure to validate Union Materials' coefficient of variation, jensen alpha, and the relationship between the mean deviation and standard deviation , to decide if Union Materials Corp performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.08 |
Very weak reverse predictability
Union Materials Corp has very weak reverse predictability. Overlapping area represents the amount of predictability between Union Materials time series from 13th of December 2024 to 27th of January 2025 and 27th of January 2025 to 13th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Union Materials Corp price movement. The serial correlation of -0.08 indicates that barely 8.0% of current Union Materials price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.08 | |
| Spearman Rank Test | -0.11 | |
| Residual Average | 0.0 | |
| Price Variance | 10.5 K |
Union Materials Corp lagged returns against current returns
Autocorrelation, which is Union Materials 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 Union Materials' stock expected returns. We can calculate the autocorrelation of Union Materials returns to help us make a trade decision. For example, suppose you find that Union Materials 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 |
Union Materials 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 Union Materials stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Union Materials stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Union Materials stock over time.
Current vs Lagged Prices |
| Timeline |
Union Materials Lagged Returns
When evaluating Union Materials' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Union Materials stock have on its future price. Union Materials 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, Union Materials autocorrelation shows the relationship between Union Materials stock current value and its past values and can show if there is a momentum factor associated with investing in Union Materials Corp.
Regressed Prices |
| Timeline |
Pair Trading with Union Materials
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 Union Materials 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 Union Materials will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Union Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Union Materials 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 Union Materials - 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 Union Materials Corp to buy it.
The correlation of Union Materials 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 Union Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Union Materials Corp 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 Union Materials 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 Union Stock
Union Materials financial ratios help investors to determine whether Union 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 Union with respect to the benefits of owning Union Materials security.