Webzen (Korea) Market Value
| 069080 Stock | KRW 15,160 70.00 0.46% |
| Symbol | Webzen |
Webzen '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 Webzen'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 Webzen.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Webzen on October 30, 2024 and sell it all today you would earn a total of 0.00 from holding Webzen Inc or generate 0.0% return on investment in Webzen over 30 days. Webzen is related to or competes with AfreecaTV, Seegene, SS TECH, Busan Industrial, Finebesteel, Shinhan Inverse, and Hyundai Heavy. Webzen Inc., a game company, engages in the PC, online, and mobile gaming business worldwide More
Webzen 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 Webzen'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 Webzen Inc upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.19) | |||
| Maximum Drawdown | 13.88 | |||
| Value At Risk | (4.12) | |||
| Potential Upside | 2.96 |
Webzen Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Webzen's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Webzen's standard deviation. In reality, there are many statistical measures that can use Webzen historical prices to predict the future Webzen's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.65) | |||
| Treynor Ratio | 0.7025 |
Webzen Inc Backtested Returns
Webzen Inc shows Sharpe Ratio of -0.1, which attests that the company had a -0.1% return per unit of risk over the last 3 months. Webzen Inc exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Webzen's Market Risk Adjusted Performance of 0.7125, mean deviation of 1.62, and Standard Deviation of 2.27 to validate the risk estimate we provide. The firm maintains a market beta of -0.44, which attests to possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Webzen are expected to decrease at a much lower rate. During the bear market, Webzen is likely to outperform the market. At this point, Webzen Inc has a negative expected return of -0.2%. Please make sure to check out Webzen's coefficient of variation, jensen alpha, and the relationship between the mean deviation and standard deviation , to decide if Webzen Inc performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.58 |
Good reverse predictability
Webzen Inc has good reverse predictability. Overlapping area represents the amount of predictability between Webzen 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 Webzen Inc price movement. The serial correlation of -0.58 indicates that roughly 58.0% of current Webzen price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.58 | |
| Spearman Rank Test | -0.23 | |
| Residual Average | 0.0 | |
| Price Variance | 16.4 K |
Webzen Inc lagged returns against current returns
Autocorrelation, which is Webzen 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 Webzen's stock expected returns. We can calculate the autocorrelation of Webzen returns to help us make a trade decision. For example, suppose you find that Webzen 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 |
Webzen 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 Webzen stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Webzen stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Webzen stock over time.
Current vs Lagged Prices |
| Timeline |
Webzen Lagged Returns
When evaluating Webzen's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Webzen stock have on its future price. Webzen 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, Webzen autocorrelation shows the relationship between Webzen stock current value and its past values and can show if there is a momentum factor associated with investing in Webzen Inc.
Regressed Prices |
| Timeline |
Pair Trading with Webzen
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 Webzen 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 Webzen will appreciate offsetting losses from the drop in the long position's value.Moving together with Webzen Stock
| 0.73 | 034220 | LG Display | PairCorr |
| 0.68 | 005380 | Hyundai Motor | PairCorr |
| 0.88 | 089970 | Adaptive Plasma Tech | PairCorr |
Moving against Webzen Stock
The ability to find closely correlated positions to Webzen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Webzen 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 Webzen - 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 Webzen Inc to buy it.
The correlation of Webzen 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 Webzen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Webzen Inc 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 Webzen 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 Webzen Stock
Webzen financial ratios help investors to determine whether Webzen 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 Webzen with respect to the benefits of owning Webzen security.