Tainet Communication (Taiwan) Market Value
| 4905 Stock | TWD 79.70 1.90 2.33% |
| Symbol | Tainet |
Tainet Communication '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 Tainet Communication'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 Tainet Communication.
| 12/05/2022 |
| 11/24/2024 |
If you would invest 0.00 in Tainet Communication on December 5, 2022 and sell it all today you would earn a total of 0.00 from holding Tainet Communication System or generate 0.0% return on investment in Tainet Communication over 720 days. Tainet Communication is related to or competes with Accton Technology, Arcadyan Technology, Advanced Ceramic, and Gemtek Technology. More
Tainet Communication 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 Tainet Communication'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 Tainet Communication System upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.14) | |||
| Maximum Drawdown | 18.27 | |||
| Value At Risk | (2.36) | |||
| Potential Upside | 2.11 |
Tainet Communication Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Tainet Communication's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Tainet Communication's standard deviation. In reality, there are many statistical measures that can use Tainet Communication historical prices to predict the future Tainet Communication's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.50) | |||
| Treynor Ratio | (0.30) |
Tainet Communication Backtested Returns
Tainet Communication owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0963, which indicates the firm had a -0.0963% return per unit of risk over the last 3 months. Tainet Communication System exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Tainet Communication's Risk Adjusted Performance of (0.05), coefficient of variation of (1,263), and Variance of 4.25 to confirm the risk estimate we provide. The entity has a beta of 0.57, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Tainet Communication's returns are expected to increase less than the market. However, during the bear market, the loss of holding Tainet Communication is expected to be smaller as well. At this point, Tainet Communication has a negative expected return of -0.2%. Please make sure to validate Tainet Communication's standard deviation, total risk alpha, and the relationship between the coefficient of variation and jensen alpha , to decide if Tainet Communication performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.21 |
Weak predictability
Tainet Communication System has weak predictability. Overlapping area represents the amount of predictability between Tainet Communication time series from 5th of December 2022 to 30th of November 2023 and 30th of November 2023 to 24th 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 Tainet Communication price movement. The serial correlation of 0.21 indicates that over 21.0% of current Tainet Communication price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.21 | |
| Spearman Rank Test | 0.39 | |
| Residual Average | 0.0 | |
| Price Variance | 84.88 |
Tainet Communication lagged returns against current returns
Autocorrelation, which is Tainet Communication 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 Tainet Communication's stock expected returns. We can calculate the autocorrelation of Tainet Communication returns to help us make a trade decision. For example, suppose you find that Tainet Communication 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 |
Tainet Communication 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 Tainet Communication stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Tainet Communication stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Tainet Communication stock over time.
Current vs Lagged Prices |
| Timeline |
Tainet Communication Lagged Returns
When evaluating Tainet Communication's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Tainet Communication stock have on its future price. Tainet Communication 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, Tainet Communication autocorrelation shows the relationship between Tainet Communication stock current value and its past values and can show if there is a momentum factor associated with investing in Tainet Communication System.
Regressed Prices |
| Timeline |
Pair Trading with Tainet Communication
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 Tainet Communication 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 Tainet Communication will appreciate offsetting losses from the drop in the long position's value.Moving against Tainet Stock
The ability to find closely correlated positions to Tainet Communication could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tainet Communication 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 Tainet Communication - 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 Tainet Communication System to buy it.
The correlation of Tainet Communication 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 Tainet Communication moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tainet Communication 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 Tainet Communication 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 Tainet Stock Analysis
When running Tainet Communication's price analysis, check to measure Tainet Communication'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 Tainet Communication is operating at the current time. Most of Tainet Communication's value examination focuses on studying past and present price action to predict the probability of Tainet Communication's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Tainet Communication's price. Additionally, you may evaluate how the addition of Tainet Communication to your portfolios can decrease your overall portfolio volatility.