REC (India) Market Value
| RECLTD Stock | 537.20 13.35 2.42% |
| Symbol | REC |
REC '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 REC'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 REC.
| 12/30/2022 |
| 12/19/2024 |
If you would invest 0.00 in REC on December 30, 2022 and sell it all today you would earn a total of 0.00 from holding REC Limited or generate 0.0% return on investment in REC over 720 days. REC is related to or competes with Reliance Industries, HDFC Bank, Kingfa Science, Rico Auto, GACM Technologies, COSMO FIRST, and Delta Manufacturing. REC is entity of India. It is traded as Stock on NSE exchange. More
REC 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 REC'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 REC Limited upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 9.78 | |||
| Value At Risk | (3.43) | |||
| Potential Upside | 3.11 |
REC Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for REC's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as REC's standard deviation. In reality, there are many statistical measures that can use REC historical prices to predict the future REC's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.22) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of REC's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
REC Limited Backtested Returns
At this point, REC is very steady. REC Limited retains Efficiency (Sharpe Ratio) of 0.0126, which implies the firm had a 0.0126% return per unit of risk over the last 3 months. We have found twenty-two technical indicators for REC, which you can use to evaluate the volatility of the company. Please check REC's coefficient of variation of (4,469), and Market Risk Adjusted Performance of (0.21) to confirm if the risk estimate we provide is consistent with the expected return of 0.0276%. The company owns a Beta (Systematic Risk) of 0.27, which implies not very significant fluctuations relative to the market. As returns on the market increase, REC's returns are expected to increase less than the market. However, during the bear market, the loss of holding REC is expected to be smaller as well. REC Limited now owns a risk of 2.18%. Please check REC Limited total risk alpha, as well as the relationship between the kurtosis and day typical price , to decide if REC Limited will be following its current price history.
Auto-correlation | 0.51 |
Modest predictability
REC Limited has modest predictability. Overlapping area represents the amount of predictability between REC time series from 30th of December 2022 to 25th of December 2023 and 25th of December 2023 to 19th 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 REC Limited price movement. The serial correlation of 0.51 indicates that about 51.0% of current REC price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.51 | |
| Spearman Rank Test | 0.67 | |
| Residual Average | 0.0 | |
| Price Variance | 3905.26 |
REC Limited lagged returns against current returns
Autocorrelation, which is REC 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 REC's stock expected returns. We can calculate the autocorrelation of REC returns to help us make a trade decision. For example, suppose you find that REC 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 |
REC 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 REC stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if REC stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in REC stock over time.
Current vs Lagged Prices |
| Timeline |
REC Lagged Returns
When evaluating REC's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of REC stock have on its future price. REC 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, REC autocorrelation shows the relationship between REC stock current value and its past values and can show if there is a momentum factor associated with investing in REC Limited.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in REC Stock
REC financial ratios help investors to determine whether REC 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 REC with respect to the benefits of owning REC security.