LATAM Airlines (Chile) Market Value
| LTM Stock | CLP 13.50 0.13 0.95% |
| Symbol | LATAM |
LATAM Airlines '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 LATAM Airlines' 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 LATAM Airlines.
| 06/11/2023 |
| 12/02/2024 |
If you would invest 0.00 in LATAM Airlines on June 11, 2023 and sell it all today you would earn a total of 0.00 from holding LATAM Airlines Group or generate 0.0% return on investment in LATAM Airlines over 540 days. LATAM Airlines is related to or competes with Falabella, Cencosud, Sociedad Qumica, and Empresas Copec. LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in P... More
LATAM Airlines 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 LATAM Airlines' 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 LATAM Airlines Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.51 | |||
| Information Ratio | 0.0551 | |||
| Maximum Drawdown | 7.36 | |||
| Value At Risk | (2.61) | |||
| Potential Upside | 2.33 |
LATAM Airlines Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for LATAM Airlines' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as LATAM Airlines' standard deviation. In reality, there are many statistical measures that can use LATAM Airlines historical prices to predict the future LATAM Airlines' volatility.| Risk Adjusted Performance | 0.1184 | |||
| Jensen Alpha | 0.232 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.0536 | |||
| Treynor Ratio | (1.14) |
LATAM Airlines Group Backtested Returns
LATAM Airlines appears to be not too volatile, given 3 months investment horizon. LATAM Airlines Group has Sharpe Ratio of 0.16, which conveys that the company had a 0.16% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for LATAM Airlines, which you can use to evaluate the volatility of the entity. Please exercise LATAM Airlines' mean deviation of 1.07, and Downside Deviation of 1.51 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, LATAM Airlines holds a performance score of 12. The firm secures a Beta (Market Risk) of -0.18, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning LATAM Airlines are expected to decrease at a much lower rate. During the bear market, LATAM Airlines is likely to outperform the market. Please check LATAM Airlines' expected short fall, and the relationship between the value at risk and daily balance of power , to make a quick decision on whether LATAM Airlines' current price movements will revert.
Auto-correlation | 0.41 |
Average predictability
LATAM Airlines Group has average predictability. Overlapping area represents the amount of predictability between LATAM Airlines time series from 11th of June 2023 to 7th of March 2024 and 7th of March 2024 to 2nd 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 LATAM Airlines Group price movement. The serial correlation of 0.41 indicates that just about 41.0% of current LATAM Airlines price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.41 | |
| Spearman Rank Test | 0.24 | |
| Residual Average | 0.0 | |
| Price Variance | 0.47 |
LATAM Airlines Group lagged returns against current returns
Autocorrelation, which is LATAM Airlines 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 LATAM Airlines' stock expected returns. We can calculate the autocorrelation of LATAM Airlines returns to help us make a trade decision. For example, suppose you find that LATAM Airlines 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 |
LATAM Airlines 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 LATAM Airlines stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if LATAM Airlines stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in LATAM Airlines stock over time.
Current vs Lagged Prices |
| Timeline |
LATAM Airlines Lagged Returns
When evaluating LATAM Airlines' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of LATAM Airlines stock have on its future price. LATAM Airlines 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, LATAM Airlines autocorrelation shows the relationship between LATAM Airlines stock current value and its past values and can show if there is a momentum factor associated with investing in LATAM Airlines Group.
Regressed Prices |
| Timeline |
Pair Trading with LATAM Airlines
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 LATAM Airlines 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 LATAM Airlines will appreciate offsetting losses from the drop in the long position's value.Moving together with LATAM Stock
Moving against LATAM Stock
The ability to find closely correlated positions to LATAM Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LATAM Airlines 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 LATAM Airlines - 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 LATAM Airlines Group to buy it.
The correlation of LATAM Airlines 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 LATAM Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LATAM Airlines Group 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 LATAM Airlines 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 Information and Resources on Investing in LATAM Stock
When determining whether LATAM Airlines Group is a strong investment it is important to analyze LATAM Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact LATAM Airlines' future performance. For an informed investment choice regarding LATAM Stock, refer to the following important reports:Check out LATAM Airlines Correlation, LATAM Airlines Volatility and LATAM Airlines Alpha and Beta module to complement your research on LATAM Airlines. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
LATAM Airlines technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.