Formosa Optical (Taiwan) Market Value
| 5312 Stock | TWD 106.50 0.50 0.47% |
| Symbol | Formosa |
Formosa Optical '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 Formosa Optical'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 Formosa Optical.
| 09/25/2024 |
| 11/24/2024 |
If you would invest 0.00 in Formosa Optical on September 25, 2024 and sell it all today you would earn a total of 0.00 from holding Formosa Optical Technology or generate 0.0% return on investment in Formosa Optical over 60 days. Formosa Optical is related to or competes with Taiwan Semiconductor, Hon Hai, MediaTek, Chunghwa Telecom, Chailease Holding, Delta Electronics, and Formosa Petrochemical. More
Formosa Optical 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 Formosa Optical'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 Formosa Optical Technology upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.627 | |||
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 4.79 | |||
| Value At Risk | (0.93) | |||
| Potential Upside | 0.995 |
Formosa Optical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Formosa Optical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Formosa Optical's standard deviation. In reality, there are many statistical measures that can use Formosa Optical historical prices to predict the future Formosa Optical's volatility.| Risk Adjusted Performance | 0.1194 | |||
| Jensen Alpha | 0.1123 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | (5.25) |
Formosa Optical Tech Backtested Returns
At this stage we consider Formosa Stock to be very steady. Formosa Optical Tech secures Sharpe Ratio (or Efficiency) of 0.16, which denotes the company had a 0.16% return per unit of risk over the last 3 months. We have found thirty technical indicators for Formosa Optical Technology, which you can use to evaluate the volatility of the firm. Please confirm Formosa Optical's Coefficient Of Variation of 642.61, mean deviation of 0.5067, and Downside Deviation of 0.627 to check if the risk estimate we provide is consistent with the expected return of 0.12%. Formosa Optical has a performance score of 12 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.0209, which means not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Formosa Optical are expected to decrease at a much lower rate. During the bear market, Formosa Optical is likely to outperform the market. Formosa Optical Tech right now shows a risk of 0.78%. Please confirm Formosa Optical Tech coefficient of variation, jensen alpha, sortino ratio, as well as the relationship between the standard deviation and total risk alpha , to decide if Formosa Optical Tech will be following its price patterns.
Auto-correlation | -0.14 |
Insignificant reverse predictability
Formosa Optical Technology has insignificant reverse predictability. Overlapping area represents the amount of predictability between Formosa Optical time series from 25th of September 2024 to 25th of October 2024 and 25th of October 2024 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 Formosa Optical Tech price movement. The serial correlation of -0.14 indicates that less than 14.0% of current Formosa Optical price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.14 | |
| Spearman Rank Test | 0.26 | |
| Residual Average | 0.0 | |
| Price Variance | 5.73 |
Formosa Optical Tech lagged returns against current returns
Autocorrelation, which is Formosa Optical 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 Formosa Optical's stock expected returns. We can calculate the autocorrelation of Formosa Optical returns to help us make a trade decision. For example, suppose you find that Formosa Optical 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 |
Formosa Optical 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 Formosa Optical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Formosa Optical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Formosa Optical stock over time.
Current vs Lagged Prices |
| Timeline |
Formosa Optical Lagged Returns
When evaluating Formosa Optical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Formosa Optical stock have on its future price. Formosa Optical 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, Formosa Optical autocorrelation shows the relationship between Formosa Optical stock current value and its past values and can show if there is a momentum factor associated with investing in Formosa Optical Technology.
Regressed Prices |
| Timeline |
Pair Trading with Formosa Optical
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 Formosa Optical 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 Formosa Optical will appreciate offsetting losses from the drop in the long position's value.Moving against Formosa Stock
| 0.88 | 3465 | New Advanced Electronics | PairCorr |
| 0.83 | 6785 | Alar Pharmaceuticals | PairCorr |
| 0.82 | 1438 | SanDi Properties | PairCorr |
| 0.8 | 1423 | Reward Wool Industry | PairCorr |
| 0.73 | 1516 | Falcon Power Split | PairCorr |
The ability to find closely correlated positions to Formosa Optical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Formosa Optical 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 Formosa Optical - 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 Formosa Optical Technology to buy it.
The correlation of Formosa Optical 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 Formosa Optical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Formosa Optical Tech 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 Formosa Optical 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 Formosa Stock Analysis
When running Formosa Optical's price analysis, check to measure Formosa Optical'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 Formosa Optical is operating at the current time. Most of Formosa Optical's value examination focuses on studying past and present price action to predict the probability of Formosa Optical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formosa Optical's price. Additionally, you may evaluate how the addition of Formosa Optical to your portfolios can decrease your overall portfolio volatility.