Lotte Corp (Korea) Market Value
| 004990 Stock | 20,900 750.00 3.46% |
| Symbol | Lotte |
Lotte Corp '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 Corp'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 Corp.
| 06/04/2024 |
| 12/01/2024 |
If you would invest 0.00 in Lotte Corp on June 4, 2024 and sell it all today you would earn a total of 0.00 from holding Lotte Corp or generate 0.0% return on investment in Lotte Corp over 180 days. Lotte Corp is related to or competes with Shinsegae Information, Lotte Data, Kisan Telecom, Aprogen Healthcare, KT Submarine, and INFINITT Healthcare. More
Lotte Corp 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 Corp'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 Corp upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.20) | |||
| Maximum Drawdown | 9.26 | |||
| Value At Risk | (3.18) | |||
| Potential Upside | 2.65 |
Lotte Corp Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lotte Corp's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lotte Corp's standard deviation. In reality, there are many statistical measures that can use Lotte Corp historical prices to predict the future Lotte Corp's volatility.| Risk Adjusted Performance | (0.08) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.48) | |||
| Treynor Ratio | (2.88) |
Lotte Corp Backtested Returns
Lotte Corp has Sharpe Ratio of -0.15, which conveys that the firm had a -0.15% return per unit of risk over the last 3 months. Lotte Corp exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lotte Corp's Risk Adjusted Performance of (0.08), mean deviation of 1.14, and Standard Deviation of 1.66 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.0693, which conveys not very significant fluctuations relative to the market. As returns on the market increase, Lotte Corp's returns are expected to increase less than the market. However, during the bear market, the loss of holding Lotte Corp is expected to be smaller as well. At this point, Lotte Corp has a negative expected return of -0.25%. Please make sure to verify Lotte Corp'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 Corp performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.74 |
Good predictability
Lotte Corp has good predictability. Overlapping area represents the amount of predictability between Lotte Corp time series from 4th of June 2024 to 2nd of September 2024 and 2nd of September 2024 to 1st 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 Lotte Corp price movement. The serial correlation of 0.74 indicates that around 74.0% of current Lotte Corp price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.74 | |
| Spearman Rank Test | 0.67 | |
| Residual Average | 0.0 | |
| Price Variance | 1.9 M |
Lotte Corp lagged returns against current returns
Autocorrelation, which is Lotte Corp 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 Corp's stock expected returns. We can calculate the autocorrelation of Lotte Corp returns to help us make a trade decision. For example, suppose you find that Lotte Corp 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 Corp 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 Corp stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lotte Corp stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lotte Corp stock over time.
Current vs Lagged Prices |
| Timeline |
Lotte Corp Lagged Returns
When evaluating Lotte Corp's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lotte Corp stock have on its future price. Lotte Corp 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 Corp autocorrelation shows the relationship between Lotte Corp stock current value and its past values and can show if there is a momentum factor associated with investing in Lotte Corp.
Regressed Prices |
| Timeline |
Pair Trading with Lotte Corp
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 Corp 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 Corp will appreciate offsetting losses from the drop in the long position's value.Moving against Lotte Stock
| 0.69 | 032830 | Samsung Life | PairCorr |
| 0.62 | 024110 | Industrial Bank | PairCorr |
| 0.56 | 105560 | KB Financial Group | PairCorr |
| 0.5 | 316140 | Woori Financial Group | PairCorr |
The ability to find closely correlated positions to Lotte Corp 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 Corp 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 Corp - 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 Corp to buy it.
The correlation of Lotte Corp 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 Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lotte Corp 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 Corp 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 Corp 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 Corp security.