East West (Pakistan) Market Value
| EWIC Stock | 45.00 2.63 6.21% |
| Symbol | East |
East West '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 East West'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 East West.
| 11/11/2024 |
| 12/11/2024 |
If you would invest 0.00 in East West on November 11, 2024 and sell it all today you would earn a total of 0.00 from holding East West Insurance or generate 0.0% return on investment in East West over 30 days.
East West 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 East West'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 East West Insurance upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.13) | |||
| Maximum Drawdown | 29.97 | |||
| Value At Risk | (9.55) | |||
| Potential Upside | 4.51 |
East West Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for East West's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as East West's standard deviation. In reality, there are many statistical measures that can use East West historical prices to predict the future East West's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.62) | |||
| Total Risk Alpha | (1.50) | |||
| Treynor Ratio | 38.82 |
East West Insurance Backtested Returns
East West appears to be very steady, given 3 months investment horizon. East West Insurance secures Sharpe Ratio (or Efficiency) of 0.0648, which denotes the company had a 0.0648% return per unit of risk over the last 3 months. We have found twenty-two technical indicators for East West Insurance, which you can use to evaluate the volatility of the firm. Please utilize East West's Mean Deviation of 2.66, variance of 30.61, and Standard Deviation of 5.53 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, East West holds a performance score of 5. The firm shows a Beta (market volatility) of -0.0161, which means not very significant fluctuations relative to the market. As returns on the market increase, returns on owning East West are expected to decrease at a much lower rate. During the bear market, East West is likely to outperform the market. Please check East West's potential upside, kurtosis, and the relationship between the maximum drawdown and skewness , to make a quick decision on whether East West's price patterns will revert.
Auto-correlation | -0.76 |
Almost perfect reverse predictability
East West Insurance has almost perfect reverse predictability. Overlapping area represents the amount of predictability between East West time series from 11th of November 2024 to 26th of November 2024 and 26th of November 2024 to 11th 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 East West Insurance price movement. The serial correlation of -0.76 indicates that around 76.0% of current East West price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.76 | |
| Spearman Rank Test | -0.03 | |
| Residual Average | 0.0 | |
| Price Variance | 10.3 |
East West Insurance lagged returns against current returns
Autocorrelation, which is East West 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 East West's stock expected returns. We can calculate the autocorrelation of East West returns to help us make a trade decision. For example, suppose you find that East West 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 |
East West 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 East West stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if East West stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in East West stock over time.
Current vs Lagged Prices |
| Timeline |
East West Lagged Returns
When evaluating East West's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of East West stock have on its future price. East West 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, East West autocorrelation shows the relationship between East West stock current value and its past values and can show if there is a momentum factor associated with investing in East West Insurance.
Regressed Prices |
| Timeline |
Pair Trading with East West
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 East West 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 East West will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to East West could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace East West 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 East West - 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 East West Insurance to buy it.
The correlation of East West 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 East West moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if East West Insurance 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 East West 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.