Lotte Energy (Korea) Market Value
| 020150 Stock | 25,050 900.00 3.47% |
| Symbol | Lotte |
Lotte Energy '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 Energy'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 Energy.
| 12/09/2022 |
| 11/28/2024 |
If you would invest 0.00 in Lotte Energy on December 9, 2022 and sell it all today you would earn a total of 0.00 from holding Lotte Energy Materials or generate 0.0% return on investment in Lotte Energy over 720 days. Lotte Energy is related to or competes with Daou Data, Busan Industrial, Finebesteel, Shinhan Inverse, Fine Besteel, Hyundai Heavy, and Hanwha Aerospace. More
Lotte Energy 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 Energy'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 Energy Materials upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 15.87 | |||
| Value At Risk | (5.91) | |||
| Potential Upside | 5.22 |
Lotte Energy Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lotte Energy's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lotte Energy's standard deviation. In reality, there are many statistical measures that can use Lotte Energy historical prices to predict the future Lotte Energy's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.40) | |||
| Total Risk Alpha | (0.94) | |||
| Treynor Ratio | 2.35 |
Lotte Energy Materials Backtested Returns
Lotte Energy Materials has Sharpe Ratio of -0.22, which conveys that the firm had a -0.22% return per unit of risk over the last 3 months. Lotte Energy exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lotte Energy's Risk Adjusted Performance of (0.09), standard deviation of 3.27, and Mean Deviation of 2.53 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of -0.18, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Lotte Energy are expected to decrease at a much lower rate. During the bear market, Lotte Energy is likely to outperform the market. At this point, Lotte Energy Materials has a negative expected return of -0.71%. Please make sure to verify Lotte Energy's maximum drawdown, potential upside, and the relationship between the treynor ratio and value at risk , to decide if Lotte Energy Materials performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.25 |
Poor predictability
Lotte Energy Materials has poor predictability. Overlapping area represents the amount of predictability between Lotte Energy time series from 9th of December 2022 to 4th of December 2023 and 4th of December 2023 to 28th 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 Energy Materials price movement. The serial correlation of 0.25 indicates that over 25.0% of current Lotte Energy price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.25 | |
| Spearman Rank Test | 0.13 | |
| Residual Average | 0.0 | |
| Price Variance | 46.6 M |
Lotte Energy Materials lagged returns against current returns
Autocorrelation, which is Lotte Energy 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 Energy's stock expected returns. We can calculate the autocorrelation of Lotte Energy returns to help us make a trade decision. For example, suppose you find that Lotte Energy 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 Energy 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 Energy stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lotte Energy stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lotte Energy stock over time.
Current vs Lagged Prices |
| Timeline |
Lotte Energy Lagged Returns
When evaluating Lotte Energy's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lotte Energy stock have on its future price. Lotte Energy 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 Energy autocorrelation shows the relationship between Lotte Energy stock current value and its past values and can show if there is a momentum factor associated with investing in Lotte Energy Materials.
Regressed Prices |
| Timeline |
Pair Trading with Lotte Energy
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 Energy 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 Energy will appreciate offsetting losses from the drop in the long position's value.Moving together with Lotte Stock
| 0.84 | 123040 | MS Autotech CoLtd | PairCorr |
| 0.72 | 012860 | Mobase Electronics CoLtd | PairCorr |
| 0.74 | 012700 | LEADCORP | PairCorr |
| 0.69 | 024910 | Kyung Chang Industrial | PairCorr |
| 0.82 | 027710 | FarmStory | PairCorr |
The ability to find closely correlated positions to Lotte Energy 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 Energy 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 Energy - 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 Energy Materials to buy it.
The correlation of Lotte Energy 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 Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lotte Energy Materials 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 Energy 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 Energy 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 Energy security.