Lotte Rental (Korea) Market Value
| 089860 Stock | 27,750 450.00 1.65% |
| Symbol | Lotte |
Lotte Rental '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 Lotte Rental'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 Lotte Rental.
| 10/22/2024 |
| 01/20/2025 |
If you would invest 0.00 in Lotte Rental on October 22, 2024 and sell it all today you would earn a total of 0.00 from holding Lotte Rental Co or generate 0.0% return on investment in Lotte Rental over 90 days.
Lotte Rental 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 Lotte Rental'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 Lotte Rental Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 17.3 | |||
| Value At Risk | (2.45) | |||
| Potential Upside | 3.55 |
Lotte Rental Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lotte Rental's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lotte Rental's standard deviation. In reality, there are many statistical measures that can use Lotte Rental historical prices to predict the future Lotte Rental's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.15) | |||
| Treynor Ratio | (0.19) |
Lotte Rental Backtested Returns
Lotte Rental has Sharpe Ratio of -0.0289, which conveys that the firm had a -0.0289 % return per unit of risk over the last 3 months. Lotte Rental exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lotte Rental's Risk Adjusted Performance of (0.02), mean deviation of 1.5, and Standard Deviation of 2.29 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.5, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Lotte Rental's returns are expected to increase less than the market. However, during the bear market, the loss of holding Lotte Rental is expected to be smaller as well. At this point, Lotte Rental has a negative expected return of -0.0664%. Please make sure to verify Lotte Rental's maximum drawdown, potential upside, and the relationship between the treynor ratio and value at risk , to decide if Lotte Rental performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.47 |
Modest reverse predictability
Lotte Rental Co has modest reverse predictability. Overlapping area represents the amount of predictability between Lotte Rental time series from 22nd of October 2024 to 6th of December 2024 and 6th of December 2024 to 20th of January 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 Lotte Rental price movement. The serial correlation of -0.47 indicates that about 47.0% of current Lotte Rental price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.47 | |
| Spearman Rank Test | -0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 2.1 M |
Lotte Rental lagged returns against current returns
Autocorrelation, which is Lotte Rental 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 Lotte Rental's stock expected returns. We can calculate the autocorrelation of Lotte Rental returns to help us make a trade decision. For example, suppose you find that Lotte Rental 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 |
Lotte Rental 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 Lotte Rental stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lotte Rental stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lotte Rental stock over time.
Current vs Lagged Prices |
| Timeline |
Lotte Rental Lagged Returns
When evaluating Lotte Rental's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lotte Rental stock have on its future price. Lotte Rental 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, Lotte Rental autocorrelation shows the relationship between Lotte Rental stock current value and its past values and can show if there is a momentum factor associated with investing in Lotte Rental Co.
Regressed Prices |
| Timeline |
Pair Trading with Lotte Rental
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 Lotte Rental 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 Lotte Rental will appreciate offsetting losses from the drop in the long position's value.Moving against Lotte Stock
| 0.46 | 005387 | Hyundai Motor Earnings Call This Week | PairCorr |
| 0.43 | 000660 | SK Hynix Earnings Call This Week | PairCorr |
| 0.37 | 051915 | LG Chem | PairCorr |
| 0.31 | 006400 | Samsung SDI | PairCorr |
The ability to find closely correlated positions to Lotte Rental could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lotte Rental 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 Lotte Rental - 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 Lotte Rental Co to buy it.
The correlation of Lotte Rental 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 Lotte Rental moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lotte Rental 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 Lotte Rental 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.