Alderon Iron Ore Stock Market Value

Symbol

Alderon

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 Alderon Iron's pink sheet 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 Alderon Iron.

Alderon Iron Upside/Downside Indicators

Alderon Iron Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Alderon Iron's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Alderon Iron's standard deviation. In reality, there are many statistical measures that can use Alderon Iron historical prices to predict the future Alderon Iron's volatility.

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Alderon Iron's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.

Autocorrelation, which is Alderon Iron pink sheet'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 Alderon Iron's pink sheet expected returns. We can calculate the autocorrelation of Alderon Iron returns to help us make a trade decision. For example, suppose you find that Alderon Iron has exhibited high autocorrelation historically, and you observe that the pink sheet is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Alderon Iron pink sheet is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Alderon Iron pink sheet is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Alderon Iron pink sheet over time.

When evaluating Alderon Iron's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Alderon Iron pink sheet have on its future price. Alderon Iron 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, Alderon Iron autocorrelation shows the relationship between Alderon Iron pink sheet current value and its past values and can show if there is a momentum factor associated with investing in Alderon Iron Ore.

Alderon Iron financial ratios help investors to determine whether Alderon Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Alderon with respect to the benefits of owning Alderon Iron security.