Formosa Chemicals (Taiwan) Market Value
| 1326 Stock | TWD 29.30 0.45 1.56% |
| Symbol | Formosa |
Formosa Chemicals '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 Formosa Chemicals' 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 Formosa Chemicals.
| 12/18/2024 |
| 03/18/2025 |
If you would invest 0.00 in Formosa Chemicals on December 18, 2024 and sell it all today you would earn a total of 0.00 from holding Formosa Chemicals Fibre or generate 0.0% return on investment in Formosa Chemicals over 90 days. Formosa Chemicals is related to or competes with Formosa Plastics, Nan Ya, Formosa Petrochemical, Cathay Financial, and China Steel. Formosa Chemicals Fibre Corporation produces and sells petrochemical products, nylon fibers, and rayon staple fibers in ... More
Formosa Chemicals 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 Formosa Chemicals' 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 Formosa Chemicals Fibre upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 10.44 | |||
| Value At Risk | (3.63) | |||
| Potential Upside | 4.66 |
Formosa Chemicals Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Formosa Chemicals' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Formosa Chemicals' standard deviation. In reality, there are many statistical measures that can use Formosa Chemicals historical prices to predict the future Formosa Chemicals' volatility.| Risk Adjusted Performance | (0.06) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | 0.1063 | |||
| Treynor Ratio | (0.34) |
Formosa Chemicals Fibre Backtested Returns
Formosa Chemicals Fibre secures Sharpe Ratio (or Efficiency) of -0.0113, which denotes the company had a -0.0113 % return per unit of risk over the last 3 months. Formosa Chemicals Fibre exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Formosa Chemicals' Mean Deviation of 1.98, variance of 6.51, and Standard Deviation of 2.55 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.62, which means possible diversification benefits within a given portfolio. As returns on the market increase, Formosa Chemicals' returns are expected to increase less than the market. However, during the bear market, the loss of holding Formosa Chemicals is expected to be smaller as well. At this point, Formosa Chemicals Fibre has a negative expected return of -0.03%. Please make sure to confirm Formosa Chemicals' information ratio, total risk alpha, maximum drawdown, as well as the relationship between the jensen alpha and treynor ratio , to decide if Formosa Chemicals Fibre performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.69 |
Very good reverse predictability
Formosa Chemicals Fibre has very good reverse predictability. Overlapping area represents the amount of predictability between Formosa Chemicals time series from 18th of December 2024 to 1st of February 2025 and 1st of February 2025 to 18th 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 Formosa Chemicals Fibre price movement. The serial correlation of -0.69 indicates that around 69.0% of current Formosa Chemicals price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.69 | |
| Spearman Rank Test | -0.2 | |
| Residual Average | 0.0 | |
| Price Variance | 1.87 |
Formosa Chemicals Fibre lagged returns against current returns
Autocorrelation, which is Formosa Chemicals 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 Formosa Chemicals' stock expected returns. We can calculate the autocorrelation of Formosa Chemicals returns to help us make a trade decision. For example, suppose you find that Formosa Chemicals 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 |
Formosa Chemicals 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 Formosa Chemicals stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Formosa Chemicals stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Formosa Chemicals stock over time.
Current vs Lagged Prices |
| Timeline |
Formosa Chemicals Lagged Returns
When evaluating Formosa Chemicals' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Formosa Chemicals stock have on its future price. Formosa Chemicals 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, Formosa Chemicals autocorrelation shows the relationship between Formosa Chemicals stock current value and its past values and can show if there is a momentum factor associated with investing in Formosa Chemicals Fibre.
Regressed Prices |
| Timeline |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Formosa Stock Analysis
When running Formosa Chemicals' price analysis, check to measure Formosa Chemicals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formosa Chemicals is operating at the current time. Most of Formosa Chemicals' value examination focuses on studying past and present price action to predict the probability of Formosa Chemicals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formosa Chemicals' price. Additionally, you may evaluate how the addition of Formosa Chemicals to your portfolios can decrease your overall portfolio volatility.