LG Innotek (Korea) Market Value
| 011070 Stock | 161,900 7,200 4.26% |
| Symbol | 011070 |
LG Innotek '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 LG Innotek'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 LG Innotek.
| 11/06/2023 |
| 11/30/2024 |
If you would invest 0.00 in LG Innotek on November 6, 2023 and sell it all today you would earn a total of 0.00 from holding LG Innotek Co or generate 0.0% return on investment in LG Innotek over 390 days. LG Innotek is related to or competes with Daedong Metals, SM Entertainment, Taeyang Metal, and Nasmedia. More
LG Innotek 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 LG Innotek'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 LG Innotek Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.28) | |||
| Maximum Drawdown | 15.73 | |||
| Value At Risk | (5.89) | |||
| Potential Upside | 3.22 |
LG Innotek Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for LG Innotek's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as LG Innotek's standard deviation. In reality, there are many statistical measures that can use LG Innotek historical prices to predict the future LG Innotek's volatility.| Risk Adjusted Performance | (0.17) | |||
| Jensen Alpha | (0.69) | |||
| Total Risk Alpha | (1.12) | |||
| Treynor Ratio | (2.22) |
LG Innotek Backtested Returns
LG Innotek retains Efficiency (Sharpe Ratio) of -0.32, which conveys that the firm had a -0.32% return per unit of price deviation over the last 3 months. LG Innotek exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify LG Innotek's Information Ratio of (0.28), mean deviation of 2.01, and Market Risk Adjusted Performance of (2.21) to check out the risk estimate we provide. The company owns a Beta (Systematic Risk) of 0.29, which conveys not very significant fluctuations relative to the market. As returns on the market increase, LG Innotek's returns are expected to increase less than the market. However, during the bear market, the loss of holding LG Innotek is expected to be smaller as well. At this point, LG Innotek has a negative expected return of -0.89%. Please make sure to verify LG Innotek's market risk adjusted performance, coefficient of variation, jensen alpha, as well as the relationship between the mean deviation and standard deviation , to decide if LG Innotek performance from the past will be repeated sooner or later.
Auto-correlation | 0.29 |
Poor predictability
LG Innotek Co has poor predictability. Overlapping area represents the amount of predictability between LG Innotek time series from 6th of November 2023 to 19th of May 2024 and 19th of May 2024 to 30th 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 LG Innotek price movement. The serial correlation of 0.29 indicates that nearly 29.0% of current LG Innotek price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.29 | |
| Spearman Rank Test | 0.33 | |
| Residual Average | 0.0 | |
| Price Variance | 1.5 B |
LG Innotek lagged returns against current returns
Autocorrelation, which is LG Innotek 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 LG Innotek's stock expected returns. We can calculate the autocorrelation of LG Innotek returns to help us make a trade decision. For example, suppose you find that LG Innotek 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 |
LG Innotek 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 LG Innotek stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if LG Innotek stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in LG Innotek stock over time.
Current vs Lagged Prices |
| Timeline |
LG Innotek Lagged Returns
When evaluating LG Innotek's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of LG Innotek stock have on its future price. LG Innotek 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, LG Innotek autocorrelation shows the relationship between LG Innotek stock current value and its past values and can show if there is a momentum factor associated with investing in LG Innotek Co.
Regressed Prices |
| Timeline |
Pair Trading with LG Innotek
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 LG Innotek 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 LG Innotek will appreciate offsetting losses from the drop in the long position's value.Moving together with 011070 Stock
| 0.86 | 254120 | Xavis | PairCorr |
| 0.89 | 353190 | Hurum | PairCorr |
| 0.76 | 034830 | Korea Real Estate | PairCorr |
| 0.78 | 030350 | Dragonfly GF Split | PairCorr |
The ability to find closely correlated positions to LG Innotek could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LG Innotek 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 LG Innotek - 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 LG Innotek Co to buy it.
The correlation of LG Innotek 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 LG Innotek moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LG Innotek 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 LG Innotek 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 011070 Stock
LG Innotek financial ratios help investors to determine whether 011070 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 011070 with respect to the benefits of owning LG Innotek security.