LG Electronics (Korea) Market Value
| 066570 Stock | 94,200 900.00 0.96% |
| Symbol | 066570 |
LG Electronics '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 Electronics' 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 Electronics.
| 01/06/2023 |
| 11/26/2024 |
If you would invest 0.00 in LG Electronics on January 6, 2023 and sell it all today you would earn a total of 0.00 from holding LG Electronics or generate 0.0% return on investment in LG Electronics over 690 days. LG Electronics is related to or competes with Foodnamoo, Samsung Life, Shinhan Financial, SCI Information, CJ Seafood, and Dongbu Insurance. More
LG Electronics 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 Electronics' 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 Electronics upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.07) | |||
| Maximum Drawdown | 11.85 | |||
| Value At Risk | (3.17) | |||
| Potential Upside | 2.82 |
LG Electronics Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for LG Electronics' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as LG Electronics' standard deviation. In reality, there are many statistical measures that can use LG Electronics historical prices to predict the future LG Electronics' volatility.| Risk Adjusted Performance | (0.0005) | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | 2.23 |
LG Electronics Backtested Returns
LG Electronics retains Efficiency (Sharpe Ratio) of -0.0232, which conveys that the firm had a -0.0232% return per unit of price deviation over the last 3 months. LG Electronics exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify LG Electronics' Information Ratio of (0.07), market risk adjusted performance of 2.24, and Mean Deviation of 1.43 to check out the risk estimate we provide. The company owns a Beta (Systematic Risk) of -0.0124, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning LG Electronics are expected to decrease at a much lower rate. During the bear market, LG Electronics is likely to outperform the market. At this point, LG Electronics has a negative expected return of -0.0496%. Please make sure to verify LG Electronics' coefficient of variation, jensen alpha, and the relationship between the mean deviation and standard deviation , to decide if LG Electronics performance from the past will be repeated sooner or later.
Auto-correlation | 0.17 |
Very weak predictability
LG Electronics has very weak predictability. Overlapping area represents the amount of predictability between LG Electronics time series from 6th of January 2023 to 17th of December 2023 and 17th of December 2023 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 Electronics price movement. The serial correlation of 0.17 indicates that over 17.0% of current LG Electronics price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.17 | |
| Spearman Rank Test | -0.17 | |
| Residual Average | 0.0 | |
| Price Variance | 37.7 M |
LG Electronics lagged returns against current returns
Autocorrelation, which is LG Electronics 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 Electronics' stock expected returns. We can calculate the autocorrelation of LG Electronics returns to help us make a trade decision. For example, suppose you find that LG Electronics 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 Electronics 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 Electronics stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if LG Electronics stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in LG Electronics stock over time.
Current vs Lagged Prices |
| Timeline |
LG Electronics Lagged Returns
When evaluating LG Electronics' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of LG Electronics stock have on its future price. LG Electronics 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 Electronics autocorrelation shows the relationship between LG Electronics stock current value and its past values and can show if there is a momentum factor associated with investing in LG Electronics.
Regressed Prices |
| Timeline |
Pair Trading with LG Electronics
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 Electronics 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 Electronics will appreciate offsetting losses from the drop in the long position's value.Moving against 066570 Stock
The ability to find closely correlated positions to LG Electronics 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 Electronics 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 Electronics - 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 Electronics to buy it.
The correlation of LG Electronics 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 Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LG Electronics 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 Electronics 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 066570 Stock
LG Electronics financial ratios help investors to determine whether 066570 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 066570 with respect to the benefits of owning LG Electronics security.