Raontech (Korea) Market Value
| 418420 Stock | 2,935 85.00 2.81% |
| Symbol | Raontech |
Raontech '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 Raontech'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 Raontech.
| 01/12/2023 |
| 12/02/2024 |
If you would invest 0.00 in Raontech on January 12, 2023 and sell it all today you would earn a total of 0.00 from holding Raontech or generate 0.0% return on investment in Raontech over 690 days.
Raontech 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 Raontech'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 Raontech upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.20) | |||
| Maximum Drawdown | 13.85 | |||
| Value At Risk | (5.22) | |||
| Potential Upside | 3.9 |
Raontech Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Raontech's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Raontech's standard deviation. In reality, there are many statistical measures that can use Raontech historical prices to predict the future Raontech's volatility.| Risk Adjusted Performance | (0.11) | |||
| Jensen Alpha | (0.48) | |||
| Total Risk Alpha | (0.91) | |||
| Treynor Ratio | (1.38) |
Raontech Backtested Returns
Raontech maintains Sharpe Ratio (i.e., Efficiency) of -0.14, which implies the firm had a -0.14% return per unit of risk over the last 3 months. Raontech exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Raontech's Coefficient Of Variation of (658.09), risk adjusted performance of (0.11), and Variance of 8.02 to confirm the risk estimate we provide. The company holds a Beta of 0.32, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Raontech's returns are expected to increase less than the market. However, during the bear market, the loss of holding Raontech is expected to be smaller as well. At this point, Raontech has a negative expected return of -0.41%. Please make sure to check Raontech's standard deviation, total risk alpha, maximum drawdown, as well as the relationship between the jensen alpha and treynor ratio , to decide if Raontech performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.24 |
Weak predictability
Raontech has weak predictability. Overlapping area represents the amount of predictability between Raontech time series from 12th of January 2023 to 23rd of December 2023 and 23rd of December 2023 to 2nd 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 Raontech price movement. The serial correlation of 0.24 indicates that over 24.0% of current Raontech price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.24 | |
| Spearman Rank Test | 0.52 | |
| Residual Average | 0.0 | |
| Price Variance | 2.8 M |
Raontech lagged returns against current returns
Autocorrelation, which is Raontech 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 Raontech's stock expected returns. We can calculate the autocorrelation of Raontech returns to help us make a trade decision. For example, suppose you find that Raontech 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 |
Raontech 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 Raontech stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Raontech stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Raontech stock over time.
Current vs Lagged Prices |
| Timeline |
Raontech Lagged Returns
When evaluating Raontech's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Raontech stock have on its future price. Raontech 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, Raontech autocorrelation shows the relationship between Raontech stock current value and its past values and can show if there is a momentum factor associated with investing in Raontech.
Regressed Prices |
| Timeline |
Pair Trading with Raontech
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 Raontech 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 Raontech will appreciate offsetting losses from the drop in the long position's value.Moving together with Raontech Stock
The ability to find closely correlated positions to Raontech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Raontech 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 Raontech - 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 Raontech to buy it.
The correlation of Raontech 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 Raontech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Raontech 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 Raontech 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.