Woorim Machinery (Korea) Market Value
| 101170 Stock | KRW 5,400 130.00 2.47% |
| Symbol | Woorim |
Woorim Machinery '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 Woorim Machinery'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 Woorim Machinery.
| 01/31/2024 |
| 11/26/2024 |
If you would invest 0.00 in Woorim Machinery on January 31, 2024 and sell it all today you would earn a total of 0.00 from holding Woorim Machinery Co or generate 0.0% return on investment in Woorim Machinery over 300 days. Woorim Machinery is related to or competes with Daewon Media, Dong A, Fine Besteel, LG Household, and Next Entertainment. Woorim Machinery Co., Ltd. manufactures and sells gears and speed reducers worldwide More
Woorim Machinery 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 Woorim Machinery'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 Woorim Machinery Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.12) | |||
| Maximum Drawdown | 9.78 | |||
| Value At Risk | (3.70) | |||
| Potential Upside | 5.01 |
Woorim Machinery Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Woorim Machinery's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Woorim Machinery's standard deviation. In reality, there are many statistical measures that can use Woorim Machinery historical prices to predict the future Woorim Machinery's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.19) | |||
| Total Risk Alpha | (0.57) | |||
| Treynor Ratio | (2.44) |
Woorim Machinery Backtested Returns
Woorim Machinery shows Sharpe Ratio of -0.0694, which attests that the company had a -0.0694% return per unit of risk over the last 3 months. Woorim Machinery exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Woorim Machinery's Standard Deviation of 2.5, mean deviation of 2.0, and Market Risk Adjusted Performance of (2.43) to validate the risk estimate we provide. The firm maintains a market beta of 0.0752, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Woorim Machinery's returns are expected to increase less than the market. However, during the bear market, the loss of holding Woorim Machinery is expected to be smaller as well. At this point, Woorim Machinery has a negative expected return of -0.17%. Please make sure to check out Woorim Machinery's standard deviation, total risk alpha, maximum drawdown, as well as the relationship between the jensen alpha and treynor ratio , to decide if Woorim Machinery performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.01 |
Virtually no predictability
Woorim Machinery Co has virtually no predictability. Overlapping area represents the amount of predictability between Woorim Machinery time series from 31st of January 2024 to 29th of June 2024 and 29th of June 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 Woorim Machinery price movement. The serial correlation of 0.01 indicates that just 1.0% of current Woorim Machinery price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.01 | |
| Spearman Rank Test | 0.02 | |
| Residual Average | 0.0 | |
| Price Variance | 386.9 K |
Woorim Machinery lagged returns against current returns
Autocorrelation, which is Woorim Machinery 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 Woorim Machinery's stock expected returns. We can calculate the autocorrelation of Woorim Machinery returns to help us make a trade decision. For example, suppose you find that Woorim Machinery 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 |
Woorim Machinery 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 Woorim Machinery stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Woorim Machinery stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Woorim Machinery stock over time.
Current vs Lagged Prices |
| Timeline |
Woorim Machinery Lagged Returns
When evaluating Woorim Machinery's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Woorim Machinery stock have on its future price. Woorim Machinery 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, Woorim Machinery autocorrelation shows the relationship between Woorim Machinery stock current value and its past values and can show if there is a momentum factor associated with investing in Woorim Machinery Co.
Regressed Prices |
| Timeline |
Pair Trading with Woorim Machinery
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 Woorim Machinery 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 Woorim Machinery will appreciate offsetting losses from the drop in the long position's value.Moving together with Woorim Stock
Moving against Woorim Stock
The ability to find closely correlated positions to Woorim Machinery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Woorim Machinery 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 Woorim Machinery - 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 Woorim Machinery Co to buy it.
The correlation of Woorim Machinery 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 Woorim Machinery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Woorim Machinery 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 Woorim Machinery 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 Woorim Stock
Woorim Machinery financial ratios help investors to determine whether Woorim 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 Woorim with respect to the benefits of owning Woorim Machinery security.