POSCO Holdings (Korea) Market Value
| 005490 Stock | 302,500 1,000.00 0.33% |
| Symbol | POSCO |
POSCO Holdings '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 POSCO Holdings' 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 POSCO Holdings.
| 10/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in POSCO Holdings on October 27, 2024 and sell it all today you would earn a total of 0.00 from holding POSCO Holdings or generate 0.0% return on investment in POSCO Holdings over 30 days. POSCO Holdings is related to or competes with Nable Communications, SK Telecom, Daishin Information, ECSTELECOM, and Hyundai Engineering. More
POSCO Holdings 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 POSCO Holdings' 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 POSCO Holdings upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 17.75 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 4.82 |
POSCO Holdings Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for POSCO Holdings' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as POSCO Holdings' standard deviation. In reality, there are many statistical measures that can use POSCO Holdings historical prices to predict the future POSCO Holdings' volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.54) | |||
| Treynor Ratio | 0.2367 |
POSCO Holdings Backtested Returns
POSCO Holdings maintains Sharpe Ratio (i.e., Efficiency) of -0.0446, which implies the firm had a -0.0446% return per unit of standard deviation over the last 3 months. POSCO Holdings exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check POSCO Holdings' Market Risk Adjusted Performance of 0.2467, coefficient of variation of (3,222), and Risk Adjusted Performance of (0.02) to confirm the risk estimate we provide. The company holds a Beta of -0.42, which implies possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning POSCO Holdings are expected to decrease at a much lower rate. During the bear market, POSCO Holdings is likely to outperform the market. At this point, POSCO Holdings has a negative expected return of -0.13%. Please make sure to check POSCO Holdings' treynor ratio, value at risk, and the relationship between the total risk alpha and maximum drawdown , to decide if POSCO Holdings performance from the past will be repeated at some future point.
Auto-correlation | -0.09 |
Very weak reverse predictability
POSCO Holdings has very weak reverse predictability. Overlapping area represents the amount of predictability between POSCO Holdings 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 POSCO Holdings price movement. The serial correlation of -0.09 indicates that less than 9.0% of current POSCO Holdings price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.09 | |
| Spearman Rank Test | 0.05 | |
| Residual Average | 0.0 | |
| Price Variance | 97.9 M |
POSCO Holdings lagged returns against current returns
Autocorrelation, which is POSCO Holdings 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 POSCO Holdings' stock expected returns. We can calculate the autocorrelation of POSCO Holdings returns to help us make a trade decision. For example, suppose you find that POSCO Holdings 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 |
POSCO Holdings 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 POSCO Holdings stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if POSCO Holdings stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in POSCO Holdings stock over time.
Current vs Lagged Prices |
| Timeline |
POSCO Holdings Lagged Returns
When evaluating POSCO Holdings' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of POSCO Holdings stock have on its future price. POSCO Holdings 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, POSCO Holdings autocorrelation shows the relationship between POSCO Holdings stock current value and its past values and can show if there is a momentum factor associated with investing in POSCO Holdings.
Regressed Prices |
| Timeline |
Pair Trading with POSCO Holdings
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 POSCO Holdings 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 POSCO Holdings will appreciate offsetting losses from the drop in the long position's value.Moving together with POSCO Stock
| 0.88 | 051910 | LG Chemicals | PairCorr |
| 0.68 | 009830 | Hanwha Solutions | PairCorr |
| 0.66 | 011170 | Lotte Chemical Corp | PairCorr |
| 0.79 | 004020 | Hyundai Steel | PairCorr |
Moving against POSCO Stock
The ability to find closely correlated positions to POSCO Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace POSCO Holdings 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 POSCO Holdings - 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 POSCO Holdings to buy it.
The correlation of POSCO Holdings 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 POSCO Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if POSCO Holdings 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 POSCO Holdings 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.Additional Information and Resources on Investing in POSCO Stock
When determining whether POSCO Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of POSCO Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Posco Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Posco Holdings Stock:Check out POSCO Holdings Correlation, POSCO Holdings Volatility and POSCO Holdings Alpha and Beta module to complement your research on POSCO Holdings. For information on how to trade POSCO Stock refer to our How to Trade POSCO Stock guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
POSCO Holdings technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.