Hotel Royal (Taiwan) Market Value
| 5704 Stock | TWD 34.85 0.15 0.43% |
| Symbol | Hotel |
Hotel Royal '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 Hotel Royal'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 Hotel Royal.
| 12/02/2023 |
| 12/26/2024 |
If you would invest 0.00 in Hotel Royal on December 2, 2023 and sell it all today you would earn a total of 0.00 from holding Hotel Royal Chihpen or generate 0.0% return on investment in Hotel Royal over 390 days. Hotel Royal is related to or competes with Champion Building, Baotek Industrial, Grand Plastic, Mercuries Life, and Ever Clear. Its resort comprises 183 guest accommodations, as well as offers recreational facilities and amenities, including variou... More
Hotel Royal 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 Hotel Royal'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 Hotel Royal Chihpen upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 14.1 | |||
| Value At Risk | (2.87) | |||
| Potential Upside | 1.47 |
Hotel Royal Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Hotel Royal's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Hotel Royal's standard deviation. In reality, there are many statistical measures that can use Hotel Royal historical prices to predict the future Hotel Royal's volatility.| Risk Adjusted Performance | (0.11) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.33) | |||
| Treynor Ratio | 0.2961 |
Hotel Royal Chihpen Backtested Returns
Hotel Royal Chihpen holds Efficiency (Sharpe) Ratio of -0.15, which attests that the entity had a -0.15% return per unit of risk over the last 3 months. Hotel Royal Chihpen exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Hotel Royal's Standard Deviation of 1.7, risk adjusted performance of (0.11), and Market Risk Adjusted Performance of 0.3061 to validate the risk estimate we provide. The company retains a Market Volatility (i.e., Beta) of -0.88, which attests to possible diversification benefits within a given portfolio. As the market becomes more bullish, returns on owning Hotel Royal are expected to decrease slowly. On the other hand, during market turmoil, Hotel Royal is expected to outperform it slightly. At this point, Hotel Royal Chihpen has a negative expected return of -0.27%. Please make sure to check out Hotel Royal's treynor ratio, potential upside, and the relationship between the total risk alpha and maximum drawdown , to decide if Hotel Royal Chihpen performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.22 |
Weak predictability
Hotel Royal Chihpen has weak predictability. Overlapping area represents the amount of predictability between Hotel Royal time series from 2nd of December 2023 to 14th of June 2024 and 14th of June 2024 to 26th 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 Hotel Royal Chihpen price movement. The serial correlation of 0.22 indicates that over 22.0% of current Hotel Royal price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.22 | |
| Spearman Rank Test | 0.46 | |
| Residual Average | 0.0 | |
| Price Variance | 6.61 |
Hotel Royal Chihpen lagged returns against current returns
Autocorrelation, which is Hotel Royal 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 Hotel Royal's stock expected returns. We can calculate the autocorrelation of Hotel Royal returns to help us make a trade decision. For example, suppose you find that Hotel Royal 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 |
Hotel Royal 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 Hotel Royal stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Hotel Royal stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Hotel Royal stock over time.
Current vs Lagged Prices |
| Timeline |
Hotel Royal Lagged Returns
When evaluating Hotel Royal's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Hotel Royal stock have on its future price. Hotel Royal 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, Hotel Royal autocorrelation shows the relationship between Hotel Royal stock current value and its past values and can show if there is a momentum factor associated with investing in Hotel Royal Chihpen.
Regressed Prices |
| Timeline |
Pair Trading with Hotel Royal
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 Hotel Royal 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 Hotel Royal will appreciate offsetting losses from the drop in the long position's value.Moving together with Hotel Stock
| 0.89 | 2707 | Formosa International | PairCorr |
| 0.85 | 2704 | Ambassador Hotel | PairCorr |
| 0.65 | 2706 | First Hotel | PairCorr |
| 0.91 | 2702 | Hotel Holiday Garden | PairCorr |
Moving against Hotel Stock
| 0.87 | 2618 | Eva Airways Corp | PairCorr |
| 0.79 | 2603 | Evergreen Marine Corp | PairCorr |
| 0.77 | 2883B | CHINA DEVELOPMENT | PairCorr |
| 0.72 | 5315 | United Radiant Technology | PairCorr |
| 0.72 | 2356 | Inventec Corp | PairCorr |
The ability to find closely correlated positions to Hotel Royal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hotel Royal 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 Hotel Royal - 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 Hotel Royal Chihpen to buy it.
The correlation of Hotel Royal 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 Hotel Royal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hotel Royal Chihpen 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 Hotel Royal 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.Additional Tools for Hotel Stock Analysis
When running Hotel Royal's price analysis, check to measure Hotel Royal's 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 Hotel Royal is operating at the current time. Most of Hotel Royal's value examination focuses on studying past and present price action to predict the probability of Hotel Royal's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hotel Royal's price. Additionally, you may evaluate how the addition of Hotel Royal to your portfolios can decrease your overall portfolio volatility.