Mughal Iron (Pakistan) Market Value
| MUGHAL Stock | 81.68 1.51 1.88% |
| Symbol | Mughal |
Mughal Iron '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 Mughal Iron'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 Mughal Iron.
| 09/12/2024 |
| 12/11/2024 |
If you would invest 0.00 in Mughal Iron on September 12, 2024 and sell it all today you would earn a total of 0.00 from holding Mughal Iron Steel or generate 0.0% return on investment in Mughal Iron over 90 days. Mughal Iron is related to or competes with Masood Textile, Fauji Foods, KSB Pumps, Mari Petroleum, Loads, Thatta Cement, and KOT Addu. More
Mughal Iron 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 Mughal Iron'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 Mughal Iron Steel upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 13.32 | |||
| Value At Risk | (5.76) | |||
| Potential Upside | 4.39 |
Mughal Iron Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Mughal Iron's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Mughal Iron's standard deviation. In reality, there are many statistical measures that can use Mughal Iron historical prices to predict the future Mughal Iron's volatility.| Risk Adjusted Performance | 0.0018 | |||
| Jensen Alpha | 0.0574 | |||
| Total Risk Alpha | (0.49) | |||
| Treynor Ratio | 0.0417 |
Mughal Iron Steel Backtested Returns
Mughal Iron Steel has Sharpe Ratio of -0.0318, which conveys that the firm had a -0.0318% return per unit of risk over the last 3 months. Mughal Iron exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Mughal Iron's Risk Adjusted Performance of 0.0018, mean deviation of 2.17, and Standard Deviation of 2.91 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of -0.79, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Mughal Iron are expected to decrease at a much lower rate. During the bear market, Mughal Iron is likely to outperform the market. At this point, Mughal Iron Steel has a negative expected return of -0.0924%. Please make sure to verify Mughal Iron's total risk alpha, kurtosis, price action indicator, as well as the relationship between the value at risk and rate of daily change , to decide if Mughal Iron Steel performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.32 |
Below average predictability
Mughal Iron Steel has below average predictability. Overlapping area represents the amount of predictability between Mughal Iron time series from 12th of September 2024 to 27th of October 2024 and 27th of October 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 Mughal Iron Steel price movement. The serial correlation of 0.32 indicates that nearly 32.0% of current Mughal Iron price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.32 | |
| Spearman Rank Test | -0.38 | |
| Residual Average | 0.0 | |
| Price Variance | 19.54 |
Mughal Iron Steel lagged returns against current returns
Autocorrelation, which is Mughal Iron 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 Mughal Iron's stock expected returns. We can calculate the autocorrelation of Mughal Iron returns to help us make a trade decision. For example, suppose you find that Mughal Iron 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 |
Mughal Iron 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 Mughal Iron stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Mughal Iron stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Mughal Iron stock over time.
Current vs Lagged Prices |
| Timeline |
Mughal Iron Lagged Returns
When evaluating Mughal Iron's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Mughal Iron stock have on its future price. Mughal Iron 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, Mughal Iron autocorrelation shows the relationship between Mughal Iron stock current value and its past values and can show if there is a momentum factor associated with investing in Mughal Iron Steel.
Regressed Prices |
| Timeline |
Pair Trading with Mughal Iron
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 Mughal Iron 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 Mughal Iron will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Mughal Iron could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mughal Iron 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 Mughal Iron - 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 Mughal Iron Steel to buy it.
The correlation of Mughal Iron 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 Mughal Iron moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mughal Iron Steel 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 Mughal Iron 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.Other Information on Investing in Mughal Stock
Mughal Iron financial ratios help investors to determine whether Mughal 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 Mughal with respect to the benefits of owning Mughal Iron security.