Eterindo Wahanatama (Indonesia) Market Value

Symbol

Eterindo

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 Eterindo Wahanatama'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 Eterindo Wahanatama.

Eterindo Wahanatama Upside/Downside Indicators

Eterindo Wahanatama Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Eterindo Wahanatama's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Eterindo Wahanatama's standard deviation. In reality, there are many statistical measures that can use Eterindo Wahanatama historical prices to predict the future Eterindo Wahanatama's volatility.

Autocorrelation, which is Eterindo Wahanatama 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 Eterindo Wahanatama's stock expected returns. We can calculate the autocorrelation of Eterindo Wahanatama returns to help us make a trade decision. For example, suppose you find that Eterindo Wahanatama 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.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Eterindo Wahanatama stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Eterindo Wahanatama stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Eterindo Wahanatama stock over time.

When evaluating Eterindo Wahanatama's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Eterindo Wahanatama stock have on its future price. Eterindo Wahanatama 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, Eterindo Wahanatama autocorrelation shows the relationship between Eterindo Wahanatama stock current value and its past values and can show if there is a momentum factor associated with investing in Eterindo Wahanatama Tbk.

Eterindo Wahanatama financial ratios help investors to determine whether Eterindo 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 Eterindo with respect to the benefits of owning Eterindo Wahanatama security.