Chung Hwa (Taiwan) Market Value
| 4205 Stock | TWD 88.00 0.90 1.01% |
| Symbol | Chung |
Chung Hwa '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 Chung Hwa'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 Chung Hwa.
| 10/03/2024 |
| 12/02/2024 |
If you would invest 0.00 in Chung Hwa on October 3, 2024 and sell it all today you would earn a total of 0.00 from holding Chung Hwa Food or generate 0.0% return on investment in Chung Hwa over 60 days. Chung Hwa is related to or competes with Uni President, Lien Hwa, Great Wall, Standard Foods, TTET Union, Charoen Pokphand, and Lian Hwa. More
Chung Hwa 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 Chung Hwa'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 Chung Hwa Food upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.43) | |||
| Maximum Drawdown | 2.46 | |||
| Value At Risk | (0.78) | |||
| Potential Upside | 0.7937 |
Chung Hwa Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Chung Hwa's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Chung Hwa's standard deviation. In reality, there are many statistical measures that can use Chung Hwa historical prices to predict the future Chung Hwa's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.13) | |||
| Treynor Ratio | (1.42) |
Chung Hwa Food Backtested Returns
Chung Hwa Food secures Sharpe Ratio (or Efficiency) of -0.15, which signifies that the company had a -0.15% return per unit of risk over the last 3 months. Chung Hwa Food exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Chung Hwa's Risk Adjusted Performance of (0.09), standard deviation of 0.4287, and Mean Deviation of 0.2851 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.041, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Chung Hwa's returns are expected to increase less than the market. However, during the bear market, the loss of holding Chung Hwa is expected to be smaller as well. At this point, Chung Hwa Food has a negative expected return of -0.0628%. Please make sure to confirm Chung Hwa's total risk alpha, maximum drawdown, potential upside, as well as the relationship between the treynor ratio and value at risk , to decide if Chung Hwa Food performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.29 |
Poor predictability
Chung Hwa Food has poor predictability. Overlapping area represents the amount of predictability between Chung Hwa time series from 3rd of October 2024 to 2nd of November 2024 and 2nd of November 2024 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 Chung Hwa Food price movement. The serial correlation of 0.29 indicates that nearly 29.0% of current Chung Hwa price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.29 | |
| Spearman Rank Test | 0.18 | |
| Residual Average | 0.0 | |
| Price Variance | 0.12 |
Chung Hwa Food lagged returns against current returns
Autocorrelation, which is Chung Hwa 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 Chung Hwa's stock expected returns. We can calculate the autocorrelation of Chung Hwa returns to help us make a trade decision. For example, suppose you find that Chung Hwa 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 |
Chung Hwa 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 Chung Hwa stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Chung Hwa stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Chung Hwa stock over time.
Current vs Lagged Prices |
| Timeline |
Chung Hwa Lagged Returns
When evaluating Chung Hwa's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Chung Hwa stock have on its future price. Chung Hwa 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, Chung Hwa autocorrelation shows the relationship between Chung Hwa stock current value and its past values and can show if there is a momentum factor associated with investing in Chung Hwa Food.
Regressed Prices |
| Timeline |
Pair Trading with Chung Hwa
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 Chung Hwa 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 Chung Hwa will appreciate offsetting losses from the drop in the long position's value.Moving together with Chung Stock
Moving against Chung Stock
| 0.89 | 2882B | Cathay Financial Holding | PairCorr |
| 0.85 | 2891 | CTBC Financial Holding | PairCorr |
| 0.83 | 2881A | Fubon Financial Holding | PairCorr |
| 0.8 | 2881B | Fubon Financial Holding | PairCorr |
| 0.79 | 1231 | Lian Hwa Foods | PairCorr |
The ability to find closely correlated positions to Chung Hwa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chung Hwa 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 Chung Hwa - 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 Chung Hwa Food to buy it.
The correlation of Chung Hwa 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 Chung Hwa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chung Hwa Food 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 Chung Hwa 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.Additional Tools for Chung Stock Analysis
When running Chung Hwa's price analysis, check to measure Chung Hwa'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 Chung Hwa is operating at the current time. Most of Chung Hwa's value examination focuses on studying past and present price action to predict the probability of Chung Hwa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chung Hwa's price. Additionally, you may evaluate how the addition of Chung Hwa to your portfolios can decrease your overall portfolio volatility.