Kakao Corp (Korea) Market Value
| 035720 Stock | 36,150 100.00 0.28% |
| Symbol | Kakao |
Kakao 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 Kakao 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 Kakao Corp.
| 10/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in Kakao Corp on October 27, 2024 and sell it all today you would earn a total of 0.00 from holding Kakao Corp or generate 0.0% return on investment in Kakao Corp over 30 days. Kakao Corp is related to or competes with AfreecaTV, SS TECH, Busan Industrial, UNISEM, Finebesteel, Fine Besteel, and Hyundai Heavy. More
Kakao 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 Kakao 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 Kakao Corp upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.23 | |||
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 9.0 | |||
| Value At Risk | (3.71) | |||
| Potential Upside | 3.28 |
Kakao Corp Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Kakao Corp's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Kakao Corp's standard deviation. In reality, there are many statistical measures that can use Kakao Corp historical prices to predict the future Kakao Corp's volatility.| Risk Adjusted Performance | 0.0081 | |||
| Jensen Alpha | 0.0722 | |||
| Total Risk Alpha | (0.33) | |||
| Sortino Ratio | (0.06) | |||
| Treynor Ratio | 0.0081 |
Kakao Corp Backtested Returns
Kakao Corp has Sharpe Ratio of -0.0117, which conveys that the firm had a -0.0117% return per unit of risk over the last 3 months. Kakao Corp exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Kakao Corp's Risk Adjusted Performance of 0.0081, mean deviation of 1.58, and Downside Deviation of 2.23 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of -0.65, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Kakao Corp are expected to decrease at a much lower rate. During the bear market, Kakao Corp is likely to outperform the market. At this point, Kakao Corp has a negative expected return of -0.0245%. Please make sure to verify Kakao Corp's mean deviation, downside deviation, standard deviation, as well as the relationship between the semi deviation and coefficient of variation , to decide if Kakao Corp performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.49 |
Modest reverse predictability
Kakao Corp has modest reverse predictability. Overlapping area represents the amount of predictability between Kakao Corp 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 Kakao Corp price movement. The serial correlation of -0.49 indicates that about 49.0% of current Kakao Corp price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.49 | |
| Spearman Rank Test | -0.71 | |
| Residual Average | 0.0 | |
| Price Variance | 1.5 M |
Kakao Corp lagged returns against current returns
Autocorrelation, which is Kakao 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 Kakao Corp's stock expected returns. We can calculate the autocorrelation of Kakao Corp returns to help us make a trade decision. For example, suppose you find that Kakao 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 |
Kakao 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 Kakao Corp stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Kakao Corp stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Kakao Corp stock over time.
Current vs Lagged Prices |
| Timeline |
Kakao Corp Lagged Returns
When evaluating Kakao Corp's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Kakao Corp stock have on its future price. Kakao 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, Kakao Corp autocorrelation shows the relationship between Kakao Corp stock current value and its past values and can show if there is a momentum factor associated with investing in Kakao Corp.
Regressed Prices |
| Timeline |
Pair Trading with Kakao 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 Kakao 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 Kakao Corp will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Kakao 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 Kakao 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 Kakao 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 Kakao Corp to buy it.
The correlation of Kakao 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 Kakao Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kakao 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 Kakao 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 Kakao Stock
Kakao Corp financial ratios help investors to determine whether Kakao 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 Kakao with respect to the benefits of owning Kakao Corp security.