Daechang Steel (Korea) Market Value
| 140520 Stock | KRW 2,225 45.00 1.98% |
| Symbol | Daechang |
Daechang Steel '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 Daechang Steel'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 Daechang Steel.
| 08/29/2024 |
| 11/27/2024 |
If you would invest 0.00 in Daechang Steel on August 29, 2024 and sell it all today you would earn a total of 0.00 from holding Daechang Steel Co or generate 0.0% return on investment in Daechang Steel over 90 days. Daechang Steel is related to or competes with LG Chemicals, POSCO Holdings, Hanwha Solutions, Lotte Chemical, Hyundai Steel, Ecopro, and Dongkuk Steel. DaeChang Steel Co., Ltd. engages in the manufacture, processing, and sale of steel products in South Korea More
Daechang Steel 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 Daechang Steel'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 Daechang Steel Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.12) | |||
| Maximum Drawdown | 10.46 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 2.01 |
Daechang Steel Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Daechang Steel's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Daechang Steel's standard deviation. In reality, there are many statistical measures that can use Daechang Steel historical prices to predict the future Daechang Steel's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | (0.38) |
Daechang Steel Backtested Returns
Daechang Steel secures Sharpe Ratio (or Efficiency) of -0.0076, which denotes the company had a -0.0076% return per unit of standard deviation over the last 3 months. Daechang Steel Co exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Daechang Steel's Mean Deviation of 0.9844, standard deviation of 1.67, and Coefficient Of Variation of (2,536) to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.2, which means not very significant fluctuations relative to the market. As returns on the market increase, Daechang Steel's returns are expected to increase less than the market. However, during the bear market, the loss of holding Daechang Steel is expected to be smaller as well. At this point, Daechang Steel has a negative expected return of -0.0127%. Please make sure to confirm Daechang Steel's market risk adjusted performance, coefficient of variation, jensen alpha, as well as the relationship between the mean deviation and standard deviation , to decide if Daechang Steel performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.22 |
Weak predictability
Daechang Steel Co has weak predictability. Overlapping area represents the amount of predictability between Daechang Steel time series from 29th of August 2024 to 13th of October 2024 and 13th of October 2024 to 27th 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 Daechang Steel price movement. The serial correlation of 0.22 indicates that over 22.0% of current Daechang Steel price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.22 | |
| Spearman Rank Test | -0.26 | |
| Residual Average | 0.0 | |
| Price Variance | 1135.87 |
Daechang Steel lagged returns against current returns
Autocorrelation, which is Daechang Steel 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 Daechang Steel's stock expected returns. We can calculate the autocorrelation of Daechang Steel returns to help us make a trade decision. For example, suppose you find that Daechang Steel 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 |
Daechang Steel 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 Daechang Steel stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Daechang Steel stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Daechang Steel stock over time.
Current vs Lagged Prices |
| Timeline |
Daechang Steel Lagged Returns
When evaluating Daechang Steel's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Daechang Steel stock have on its future price. Daechang Steel 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, Daechang Steel autocorrelation shows the relationship between Daechang Steel stock current value and its past values and can show if there is a momentum factor associated with investing in Daechang Steel Co.
Regressed Prices |
| Timeline |
Pair Trading with Daechang Steel
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 Daechang Steel 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 Daechang Steel will appreciate offsetting losses from the drop in the long position's value.Moving against Daechang Stock
| 0.4 | 373220 | LG Energy Solution | PairCorr |
| 0.4 | 105560 | KB Financial Group | PairCorr |
| 0.38 | 024110 | Industrial Bank | PairCorr |
| 0.31 | 001430 | SeAH Bestee | PairCorr |
The ability to find closely correlated positions to Daechang Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Daechang Steel 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 Daechang Steel - 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 Daechang Steel Co to buy it.
The correlation of Daechang Steel 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 Daechang Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Daechang Steel 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 Daechang Steel 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 Daechang Stock
Daechang Steel financial ratios help investors to determine whether Daechang 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 Daechang with respect to the benefits of owning Daechang Steel security.