WPP PLC (Germany) Market Value
| 0WP Stock | 10.30 0.30 3.00% |
| Symbol | WPP |
WPP PLC '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 WPP PLC'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 WPP PLC.
| 12/12/2022 |
| 12/01/2024 |
If you would invest 0.00 in WPP PLC on December 12, 2022 and sell it all today you would earn a total of 0.00 from holding WPP PLC or generate 0.0% return on investment in WPP PLC over 720 days. WPP PLC is related to or competes with CHIBA BANK, National Bank, Corporate Office, Heartland Financial, AIR PRODCHEMICALS, and Chiba Bank. More
WPP PLC 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 WPP PLC'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 WPP PLC upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.65 | |||
| Information Ratio | 0.1073 | |||
| Maximum Drawdown | 10.81 | |||
| Value At Risk | (2.00) | |||
| Potential Upside | 2.58 |
WPP PLC Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for WPP PLC's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as WPP PLC's standard deviation. In reality, there are many statistical measures that can use WPP PLC historical prices to predict the future WPP PLC's volatility.| Risk Adjusted Performance | 0.1488 | |||
| Jensen Alpha | 0.2751 | |||
| Total Risk Alpha | 0.0251 | |||
| Sortino Ratio | 0.1115 | |||
| Treynor Ratio | 1.08 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of WPP PLC's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
WPP PLC Backtested Returns
WPP PLC appears to be not too volatile, given 3 months investment horizon. WPP PLC shows Sharpe Ratio of 0.19, which attests that the company had a 0.19% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for WPP PLC, which you can use to evaluate the volatility of the company. Please utilize WPP PLC's Mean Deviation of 1.21, downside deviation of 1.65, and Risk Adjusted Performance of 0.1488 to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, WPP PLC holds a performance score of 14. The firm maintains a market beta of 0.29, which attests to not very significant fluctuations relative to the market. As returns on the market increase, WPP PLC's returns are expected to increase less than the market. However, during the bear market, the loss of holding WPP PLC is expected to be smaller as well. Please check WPP PLC's value at risk, kurtosis, and the relationship between the sortino ratio and semi variance , to make a quick decision on whether WPP PLC's historical returns will revert.
Auto-correlation | -0.5 |
Modest reverse predictability
WPP PLC has modest reverse predictability. Overlapping area represents the amount of predictability between WPP PLC time series from 12th of December 2022 to 7th of December 2023 and 7th of December 2023 to 1st of December 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 WPP PLC price movement. The serial correlation of -0.5 indicates that about 50.0% of current WPP PLC price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.5 | |
| Spearman Rank Test | -0.44 | |
| Residual Average | 0.0 | |
| Price Variance | 0.37 |
WPP PLC lagged returns against current returns
Autocorrelation, which is WPP PLC 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 WPP PLC's stock expected returns. We can calculate the autocorrelation of WPP PLC returns to help us make a trade decision. For example, suppose you find that WPP PLC 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 |
WPP PLC 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 WPP PLC stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if WPP PLC stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in WPP PLC stock over time.
Current vs Lagged Prices |
| Timeline |
WPP PLC Lagged Returns
When evaluating WPP PLC's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of WPP PLC stock have on its future price. WPP PLC 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, WPP PLC autocorrelation shows the relationship between WPP PLC stock current value and its past values and can show if there is a momentum factor associated with investing in WPP PLC.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for WPP Stock Analysis
When running WPP PLC's price analysis, check to measure WPP PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy WPP PLC is operating at the current time. Most of WPP PLC's value examination focuses on studying past and present price action to predict the probability of WPP PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move WPP PLC's price. Additionally, you may evaluate how the addition of WPP PLC to your portfolios can decrease your overall portfolio volatility.