Lotte Fine (Korea) Market Value
| 004000 Stock | 35,350 400.00 1.12% |
| Symbol | Lotte |
Lotte Fine '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 Lotte Fine'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 Lotte Fine.
| 10/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in Lotte Fine on October 27, 2024 and sell it all today you would earn a total of 0.00 from holding Lotte Fine Chemical or generate 0.0% return on investment in Lotte Fine over 30 days. Lotte Fine is related to or competes with LG Chemicals, Lotte Chemical, Hyundai Steel, and Seah Steel. More
Lotte Fine 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 Lotte Fine'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 Lotte Fine Chemical upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.18) | |||
| Maximum Drawdown | 13.5 | |||
| Value At Risk | (3.28) | |||
| Potential Upside | 3.56 |
Lotte Fine Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lotte Fine's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lotte Fine's standard deviation. In reality, there are many statistical measures that can use Lotte Fine historical prices to predict the future Lotte Fine's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.30) | |||
| Total Risk Alpha | (0.68) | |||
| Treynor Ratio | 11.13 |
Lotte Fine Chemical Backtested Returns
Lotte Fine Chemical has Sharpe Ratio of -0.2, which conveys that the firm had a -0.2% return per unit of risk over the last 3 months. Lotte Fine exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lotte Fine's Risk Adjusted Performance of (0.09), mean deviation of 1.82, and Standard Deviation of 2.41 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of -0.0273, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Lotte Fine are expected to decrease at a much lower rate. During the bear market, Lotte Fine is likely to outperform the market. At this point, Lotte Fine Chemical has a negative expected return of -0.49%. Please make sure to verify Lotte Fine's total risk alpha, maximum drawdown, potential upside, as well as the relationship between the treynor ratio and value at risk , to decide if Lotte Fine Chemical performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.79 |
Good predictability
Lotte Fine Chemical has good predictability. Overlapping area represents the amount of predictability between Lotte Fine time series from 27th of October 2024 to 11th of November 2024 and 11th of November 2024 to 26th of November 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 Lotte Fine Chemical price movement. The serial correlation of 0.79 indicates that around 79.0% of current Lotte Fine price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.79 | |
| Spearman Rank Test | 0.86 | |
| Residual Average | 0.0 | |
| Price Variance | 1.2 M |
Lotte Fine Chemical lagged returns against current returns
Autocorrelation, which is Lotte Fine 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 Lotte Fine's stock expected returns. We can calculate the autocorrelation of Lotte Fine returns to help us make a trade decision. For example, suppose you find that Lotte Fine 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 |
Lotte Fine 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 Lotte Fine stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lotte Fine stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lotte Fine stock over time.
Current vs Lagged Prices |
| Timeline |
Lotte Fine Lagged Returns
When evaluating Lotte Fine's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lotte Fine stock have on its future price. Lotte Fine 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, Lotte Fine autocorrelation shows the relationship between Lotte Fine stock current value and its past values and can show if there is a momentum factor associated with investing in Lotte Fine Chemical.
Regressed Prices |
| Timeline |
Pair Trading with Lotte Fine
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 Lotte Fine 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 Lotte Fine will appreciate offsetting losses from the drop in the long position's value.Moving together with Lotte Stock
| 0.66 | 051910 | LG Chemicals | PairCorr |
| 0.74 | 005490 | POSCO Holdings | PairCorr |
| 0.81 | 009830 | Hanwha Solutions | PairCorr |
| 0.8 | 004020 | Hyundai Steel | PairCorr |
Moving against Lotte Stock
The ability to find closely correlated positions to Lotte Fine could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lotte Fine 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 Lotte Fine - 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 Lotte Fine Chemical to buy it.
The correlation of Lotte Fine 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 Lotte Fine moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lotte Fine Chemical 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 Lotte Fine 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 Lotte Stock
Lotte Fine financial ratios help investors to determine whether Lotte 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 Lotte with respect to the benefits of owning Lotte Fine security.