LG Chemicals (Korea) Market Value
| 051910 Stock | 306,500 8,500 2.85% |
| Symbol | 051910 |
LG Chemicals '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 Chemicals' 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 Chemicals.
| 07/05/2023 |
| 11/26/2024 |
If you would invest 0.00 in LG Chemicals on July 5, 2023 and sell it all today you would earn a total of 0.00 from holding LG Chemicals or generate 0.0% return on investment in LG Chemicals over 510 days. LG Chemicals is related to or competes with Hyundai Industrial, Songwon Industrial, Daiyang Metal, Pungguk Ethanol, EBEST Investment, Atinum Investment, and SBI Investment. More
LG Chemicals 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 Chemicals' 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 Chemicals upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.29 | |||
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 14.51 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 5.12 |
LG Chemicals Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for LG Chemicals' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as LG Chemicals' standard deviation. In reality, there are many statistical measures that can use LG Chemicals historical prices to predict the future LG Chemicals' volatility.| Risk Adjusted Performance | 0.0378 | |||
| Jensen Alpha | 0.1059 | |||
| Total Risk Alpha | (0.30) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | (0.82) |
LG Chemicals Backtested Returns
LG Chemicals retains Efficiency (Sharpe Ratio) of -0.0027, which conveys that the firm had a -0.0027% return per unit of price deviation over the last 3 months. LG Chemicals exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify LG Chemicals' Market Risk Adjusted Performance of (0.81), standard deviation of 2.54, and Mean Deviation of 1.82 to check out the risk estimate we provide. The company owns a Beta (Systematic Risk) of -0.11, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning LG Chemicals are expected to decrease at a much lower rate. During the bear market, LG Chemicals is likely to outperform the market. At this point, LG Chemicals has a negative expected return of -0.0069%. Please make sure to verify LG Chemicals' semi deviation, coefficient of variation, and the relationship between the mean deviation and downside deviation , to decide if LG Chemicals performance from the past will be repeated sooner or later.
Auto-correlation | 0.73 |
Good predictability
LG Chemicals has good predictability. Overlapping area represents the amount of predictability between LG Chemicals time series from 5th of July 2023 to 16th of March 2024 and 16th of March 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 LG Chemicals price movement. The serial correlation of 0.73 indicates that around 73.0% of current LG Chemicals price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.73 | |
| Spearman Rank Test | 0.78 | |
| Residual Average | 0.0 | |
| Price Variance | 1.8 B |
LG Chemicals lagged returns against current returns
Autocorrelation, which is LG Chemicals 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 Chemicals' stock expected returns. We can calculate the autocorrelation of LG Chemicals returns to help us make a trade decision. For example, suppose you find that LG Chemicals 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 Chemicals 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 Chemicals stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if LG Chemicals stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in LG Chemicals stock over time.
Current vs Lagged Prices |
| Timeline |
LG Chemicals Lagged Returns
When evaluating LG Chemicals' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of LG Chemicals stock have on its future price. LG Chemicals 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 Chemicals autocorrelation shows the relationship between LG Chemicals stock current value and its past values and can show if there is a momentum factor associated with investing in LG Chemicals.
Regressed Prices |
| Timeline |
Pair Trading with LG Chemicals
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 Chemicals 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 Chemicals will appreciate offsetting losses from the drop in the long position's value.Moving together with 051910 Stock
| 0.88 | 005490 | POSCO Holdings | PairCorr |
| 0.73 | 011170 | Lotte Chemical Corp | PairCorr |
| 0.82 | 004020 | Hyundai Steel | PairCorr |
Moving against 051910 Stock
The ability to find closely correlated positions to LG Chemicals 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 Chemicals 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 Chemicals - 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 Chemicals to buy it.
The correlation of LG Chemicals 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 Chemicals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LG Chemicals 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 Chemicals 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 051910 Stock
LG Chemicals financial ratios help investors to determine whether 051910 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 051910 with respect to the benefits of owning LG Chemicals security.