Bestway Cement (Pakistan) Market Value
| BWCL Stock | 324.73 3.82 1.19% |
| Symbol | Bestway |
Bestway Cement '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 Bestway Cement'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 Bestway Cement.
| 06/09/2023 |
| 11/30/2024 |
If you would invest 0.00 in Bestway Cement on June 9, 2023 and sell it all today you would earn a total of 0.00 from holding Bestway Cement or generate 0.0% return on investment in Bestway Cement over 540 days. Bestway Cement is related to or competes with National Bank, Shaheen Insurance, Pakistan Telecommunicatio, Habib Insurance, Reliance Insurance, and Soneri Bank. More
Bestway Cement 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 Bestway Cement'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 Bestway Cement upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.9572 | |||
| Information Ratio | 0.2927 | |||
| Maximum Drawdown | 8.71 | |||
| Value At Risk | (1.31) | |||
| Potential Upside | 3.49 |
Bestway Cement Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Bestway Cement's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Bestway Cement's standard deviation. In reality, there are many statistical measures that can use Bestway Cement historical prices to predict the future Bestway Cement's volatility.| Risk Adjusted Performance | 0.2999 | |||
| Jensen Alpha | 0.5846 | |||
| Total Risk Alpha | 0.313 | |||
| Sortino Ratio | 0.4507 | |||
| Treynor Ratio | (2.79) |
Bestway Cement Backtested Returns
Bestway Cement appears to be very steady, given 3 months investment horizon. Bestway Cement secures Sharpe Ratio (or Efficiency) of 0.38, which signifies that the company had a 0.38% return per unit of risk over the last 3 months. By analyzing Bestway Cement's technical indicators, you can evaluate if the expected return of 0.56% is justified by implied risk. Please makes use of Bestway Cement's Coefficient Of Variation of 259.05, mean deviation of 1.0, and Risk Adjusted Performance of 0.2999 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Bestway Cement holds a performance score of 29. The firm shows a Beta (market volatility) of -0.2, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Bestway Cement are expected to decrease at a much lower rate. During the bear market, Bestway Cement is likely to outperform the market. Please check Bestway Cement's treynor ratio, value at risk, and the relationship between the sortino ratio and maximum drawdown , to make a quick decision on whether Bestway Cement's price patterns will revert.
Auto-correlation | 0.87 |
Very good predictability
Bestway Cement has very good predictability. Overlapping area represents the amount of predictability between Bestway Cement time series from 9th of June 2023 to 5th of March 2024 and 5th of March 2024 to 30th 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 Bestway Cement price movement. The serial correlation of 0.87 indicates that approximately 87.0% of current Bestway Cement price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.87 | |
| Spearman Rank Test | 0.95 | |
| Residual Average | 0.0 | |
| Price Variance | 1247.99 |
Bestway Cement lagged returns against current returns
Autocorrelation, which is Bestway Cement 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 Bestway Cement's stock expected returns. We can calculate the autocorrelation of Bestway Cement returns to help us make a trade decision. For example, suppose you find that Bestway Cement 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 |
Bestway Cement 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 Bestway Cement stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Bestway Cement stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Bestway Cement stock over time.
Current vs Lagged Prices |
| Timeline |
Bestway Cement Lagged Returns
When evaluating Bestway Cement's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Bestway Cement stock have on its future price. Bestway Cement 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, Bestway Cement autocorrelation shows the relationship between Bestway Cement stock current value and its past values and can show if there is a momentum factor associated with investing in Bestway Cement.
Regressed Prices |
| Timeline |
Pair Trading with Bestway Cement
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 Bestway Cement 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 Bestway Cement will appreciate offsetting losses from the drop in the long position's value.Moving together with Bestway Stock
| 0.72 | HBL | Habib Bank | PairCorr |
| 0.88 | UBL | United Bank | PairCorr |
| 0.77 | MCB | MCB Bank | PairCorr |
| 0.8 | ABL | Allied Bank | PairCorr |
The ability to find closely correlated positions to Bestway Cement could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bestway Cement 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 Bestway Cement - 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 Bestway Cement to buy it.
The correlation of Bestway Cement 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 Bestway Cement moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bestway Cement 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 Bestway Cement 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.Other Information on Investing in Bestway Stock
Bestway Cement financial ratios help investors to determine whether Bestway Stock 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 Bestway with respect to the benefits of owning Bestway Cement security.