Cheng Fwa (Taiwan) Market Value
| 5426 Stock | TWD 31.85 0.95 2.90% |
| Symbol | Cheng |
Cheng Fwa '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 Cheng Fwa'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 Cheng Fwa.
| 12/14/2022 |
| 12/03/2024 |
If you would invest 0.00 in Cheng Fwa on December 14, 2022 and sell it all today you would earn a total of 0.00 from holding Cheng Fwa Industrial or generate 0.0% return on investment in Cheng Fwa over 720 days. Cheng Fwa is related to or competes with Ho Tung, SynCore Biotechnology, GeneReach Biotechnology, Apex Biotechnology, Double Bond, Level Biotechnology, and Golden Biotechnology. More
Cheng Fwa 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 Cheng Fwa'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 Cheng Fwa Industrial upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.65 | |||
| Information Ratio | 0.0113 | |||
| Maximum Drawdown | 15.93 | |||
| Value At Risk | (4.14) | |||
| Potential Upside | 6.94 |
Cheng Fwa Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cheng Fwa's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cheng Fwa's standard deviation. In reality, there are many statistical measures that can use Cheng Fwa historical prices to predict the future Cheng Fwa's volatility.| Risk Adjusted Performance | 0.046 | |||
| Jensen Alpha | 0.1584 | |||
| Total Risk Alpha | (0.33) | |||
| Sortino Ratio | 0.0136 | |||
| Treynor Ratio | (2.13) |
Cheng Fwa Industrial Backtested Returns
Cheng Fwa appears to be not too volatile, given 3 months investment horizon. Cheng Fwa Industrial secures Sharpe Ratio (or Efficiency) of 0.0836, which signifies that the company had a 0.0836% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Cheng Fwa Industrial, which you can use to evaluate the volatility of the firm. Please makes use of Cheng Fwa's risk adjusted performance of 0.046, and Mean Deviation of 2.32 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Cheng Fwa holds a performance score of 6. The firm shows a Beta (market volatility) of -0.0706, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Cheng Fwa are expected to decrease at a much lower rate. During the bear market, Cheng Fwa is likely to outperform the market. Please check Cheng Fwa's semi deviation, coefficient of variation, and the relationship between the mean deviation and downside deviation , to make a quick decision on whether Cheng Fwa's price patterns will revert.
Auto-correlation | -0.06 |
Very weak reverse predictability
Cheng Fwa Industrial has very weak reverse predictability. Overlapping area represents the amount of predictability between Cheng Fwa time series from 14th of December 2022 to 9th of December 2023 and 9th of December 2023 to 3rd 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 Cheng Fwa Industrial price movement. The serial correlation of -0.06 indicates that barely 6.0% of current Cheng Fwa price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.06 | |
| Spearman Rank Test | -0.24 | |
| Residual Average | 0.0 | |
| Price Variance | 20.28 |
Cheng Fwa Industrial lagged returns against current returns
Autocorrelation, which is Cheng Fwa 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 Cheng Fwa's stock expected returns. We can calculate the autocorrelation of Cheng Fwa returns to help us make a trade decision. For example, suppose you find that Cheng Fwa 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 |
Cheng Fwa 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 Cheng Fwa stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Cheng Fwa stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Cheng Fwa stock over time.
Current vs Lagged Prices |
| Timeline |
Cheng Fwa Lagged Returns
When evaluating Cheng Fwa's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Cheng Fwa stock have on its future price. Cheng Fwa 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, Cheng Fwa autocorrelation shows the relationship between Cheng Fwa stock current value and its past values and can show if there is a momentum factor associated with investing in Cheng Fwa Industrial.
Regressed Prices |
| Timeline |
Pair Trading with Cheng Fwa
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 Cheng Fwa 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 Cheng Fwa will appreciate offsetting losses from the drop in the long position's value.Moving against Cheng Stock
| 0.82 | 2474 | Catcher Technology | PairCorr |
| 0.63 | 1532 | China Metal Products | PairCorr |
| 0.62 | 1589 | Yeong Guan Energy | PairCorr |
| 0.61 | 2211 | Evergreen Steel Corp | PairCorr |
| 0.58 | 3631 | Chernan Metal Industrial | PairCorr |
The ability to find closely correlated positions to Cheng Fwa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cheng Fwa 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 Cheng Fwa - 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 Cheng Fwa Industrial to buy it.
The correlation of Cheng Fwa 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 Cheng Fwa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cheng Fwa Industrial 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 Cheng Fwa 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 Cheng Stock Analysis
When running Cheng Fwa's price analysis, check to measure Cheng Fwa'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 Cheng Fwa is operating at the current time. Most of Cheng Fwa's value examination focuses on studying past and present price action to predict the probability of Cheng Fwa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cheng Fwa's price. Additionally, you may evaluate how the addition of Cheng Fwa to your portfolios can decrease your overall portfolio volatility.