Scandinavian Medical (Denmark) Market Value
| SMSMED Stock | 5.32 0.34 6.01% |
| Symbol | Scandinavian |
Scandinavian Medical '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 Scandinavian Medical'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 Scandinavian Medical.
| 12/19/2024 |
| 03/19/2025 |
If you would invest 0.00 in Scandinavian Medical on December 19, 2024 and sell it all today you would earn a total of 0.00 from holding Scandinavian Medical Solutions or generate 0.0% return on investment in Scandinavian Medical over 90 days.
Scandinavian Medical 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 Scandinavian Medical'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 Scandinavian Medical Solutions upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 20.58 | |||
| Value At Risk | (6.01) | |||
| Potential Upside | 7.17 |
Scandinavian Medical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Scandinavian Medical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Scandinavian Medical's standard deviation. In reality, there are many statistical measures that can use Scandinavian Medical historical prices to predict the future Scandinavian Medical's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.08) | |||
| Total Risk Alpha | 0.2656 | |||
| Treynor Ratio | (0.25) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Scandinavian Medical'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.
Scandinavian Medical Backtested Returns
At this point, Scandinavian Medical is moderately volatile. Scandinavian Medical owns Efficiency Ratio (i.e., Sharpe Ratio) of close to zero, which indicates the firm had a close to zero % return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Scandinavian Medical Solutions, which you can use to evaluate the volatility of the company. Please validate Scandinavian Medical's Variance of 13.81, coefficient of variation of (3,406), and Risk Adjusted Performance of (0.02) to confirm if the risk estimate we provide is consistent with the expected return of 0.0135%. The entity has a beta of 0.47, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Scandinavian Medical's returns are expected to increase less than the market. However, during the bear market, the loss of holding Scandinavian Medical is expected to be smaller as well. Scandinavian Medical right now has a risk of 3.78%. Please validate Scandinavian Medical potential upside, and the relationship between the total risk alpha and daily balance of power , to decide if Scandinavian Medical will be following its existing price patterns.
Auto-correlation | 0.02 |
Virtually no predictability
Scandinavian Medical Solutions has virtually no predictability. Overlapping area represents the amount of predictability between Scandinavian Medical time series from 19th of December 2024 to 2nd of February 2025 and 2nd of February 2025 to 19th 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 Scandinavian Medical price movement. The serial correlation of 0.02 indicates that only 2.0% of current Scandinavian Medical price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.02 | |
| Spearman Rank Test | -0.38 | |
| Residual Average | 0.0 | |
| Price Variance | 0.03 |
Scandinavian Medical lagged returns against current returns
Autocorrelation, which is Scandinavian Medical 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 Scandinavian Medical's stock expected returns. We can calculate the autocorrelation of Scandinavian Medical returns to help us make a trade decision. For example, suppose you find that Scandinavian Medical 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 |
Scandinavian Medical 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 Scandinavian Medical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Scandinavian Medical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Scandinavian Medical stock over time.
Current vs Lagged Prices |
| Timeline |
Scandinavian Medical Lagged Returns
When evaluating Scandinavian Medical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Scandinavian Medical stock have on its future price. Scandinavian Medical 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, Scandinavian Medical autocorrelation shows the relationship between Scandinavian Medical stock current value and its past values and can show if there is a momentum factor associated with investing in Scandinavian Medical Solutions.
Regressed Prices |
| Timeline |
Pair Trading with Scandinavian Medical
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 Scandinavian Medical 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 Scandinavian Medical will appreciate offsetting losses from the drop in the long position's value.Moving against Scandinavian Stock
| 0.6 | DANT | Dantax | PairCorr |
| 0.42 | CONFRZ | Conferize AS | PairCorr |
| 0.39 | BO | Bang Olufsen | PairCorr |
| 0.39 | EGNETY | EgnsINVEST Ejendomme | PairCorr |
The ability to find closely correlated positions to Scandinavian Medical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Scandinavian Medical 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 Scandinavian Medical - 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 Scandinavian Medical Solutions to buy it.
The correlation of Scandinavian Medical 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 Scandinavian Medical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Scandinavian Medical 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 Scandinavian Medical 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.