Sitara Chemical (Pakistan) Market Value
| SITC Stock | 376.09 0.98 0.26% |
| Symbol | Sitara |
Sitara Chemical '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 Sitara Chemical'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 Sitara Chemical.
| 12/17/2024 |
| 03/17/2025 |
If you would invest 0.00 in Sitara Chemical on December 17, 2024 and sell it all today you would earn a total of 0.00 from holding Sitara Chemical Industries or generate 0.0% return on investment in Sitara Chemical over 90 days. Sitara Chemical is related to or competes with Meezan Bank, National Bank, Habib Insurance, Shifa International, IGI Life, and Engro Polymer. More
Sitara Chemical 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 Sitara Chemical'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 Sitara Chemical Industries upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.54 | |||
| Information Ratio | 0.1502 | |||
| Maximum Drawdown | 13.27 | |||
| Value At Risk | (4.34) | |||
| Potential Upside | 6.22 |
Sitara Chemical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Sitara Chemical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Sitara Chemical's standard deviation. In reality, there are many statistical measures that can use Sitara Chemical historical prices to predict the future Sitara Chemical's volatility.| Risk Adjusted Performance | 0.1076 | |||
| Jensen Alpha | 0.2981 | |||
| Total Risk Alpha | 0.6784 | |||
| Sortino Ratio | 0.169 | |||
| Treynor Ratio | (1.57) |
Sitara Chemical Indu Backtested Returns
Sitara Chemical appears to be very steady, given 3 months investment horizon. Sitara Chemical Indu owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.12, which indicates the firm had a 0.12 % return per unit of risk over the last 3 months. We have found thirty technical indicators for Sitara Chemical Industries, which you can use to evaluate the volatility of the company. Please review Sitara Chemical's Risk Adjusted Performance of 0.1076, coefficient of variation of 865.17, and Semi Deviation of 1.96 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Sitara Chemical holds a performance score of 9. The entity has a beta of -0.2, which indicates not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Sitara Chemical are expected to decrease at a much lower rate. During the bear market, Sitara Chemical is likely to outperform the market. Please check Sitara Chemical's value at risk, downside variance, and the relationship between the maximum drawdown and potential upside , to make a quick decision on whether Sitara Chemical's existing price patterns will revert.
Auto-correlation | 0.60 |
Good predictability
Sitara Chemical Industries has good predictability. Overlapping area represents the amount of predictability between Sitara Chemical time series from 17th of December 2024 to 31st of January 2025 and 31st of January 2025 to 17th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Sitara Chemical Indu price movement. The serial correlation of 0.6 indicates that roughly 60.0% of current Sitara Chemical price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.6 | |
| Spearman Rank Test | 0.64 | |
| Residual Average | 0.0 | |
| Price Variance | 822.74 |
Sitara Chemical Indu lagged returns against current returns
Autocorrelation, which is Sitara Chemical 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 Sitara Chemical's stock expected returns. We can calculate the autocorrelation of Sitara Chemical returns to help us make a trade decision. For example, suppose you find that Sitara Chemical 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 |
Sitara Chemical 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 Sitara Chemical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Sitara Chemical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Sitara Chemical stock over time.
Current vs Lagged Prices |
| Timeline |
Sitara Chemical Lagged Returns
When evaluating Sitara Chemical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Sitara Chemical stock have on its future price. Sitara Chemical 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, Sitara Chemical autocorrelation shows the relationship between Sitara Chemical stock current value and its past values and can show if there is a momentum factor associated with investing in Sitara Chemical Industries.
Regressed Prices |
| Timeline |
Pair Trading with Sitara Chemical
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 Sitara Chemical 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 Sitara Chemical will appreciate offsetting losses from the drop in the long position's value.Moving against Sitara Stock
The ability to find closely correlated positions to Sitara Chemical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sitara Chemical 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 Sitara Chemical - 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 Sitara Chemical Industries to buy it.
The correlation of Sitara Chemical 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 Sitara Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sitara Chemical Indu 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 Sitara Chemical 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 Sitara Stock
Sitara Chemical financial ratios help investors to determine whether Sitara 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 Sitara with respect to the benefits of owning Sitara Chemical security.