Banco De (Chile) Market Value
| CHILE Stock | CLP 112.00 1.00 0.88% |
| Symbol | Banco |
Banco De '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 Banco De'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 Banco De.
| 07/05/2023 |
| 11/26/2024 |
If you would invest 0.00 in Banco De on July 5, 2023 and sell it all today you would earn a total of 0.00 from holding Banco de Chile or generate 0.0% return on investment in Banco De over 510 days. Banco De is related to or competes with Banco Santander, Banco De, Falabella, Cencosud, and Empresas Copec. Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chi... More
Banco De 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 Banco De'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 Banco de Chile upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 3.64 | |||
| Value At Risk | (1.75) | |||
| Potential Upside | 1.63 |
Banco De Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Banco De's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Banco De's standard deviation. In reality, there are many statistical measures that can use Banco De historical prices to predict the future Banco De's volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.20) | |||
| Treynor Ratio | 4.9 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Banco De'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.
Banco de Chile Backtested Returns
Banco de Chile secures Sharpe Ratio (or Efficiency) of -0.0333, which signifies that the company had a -0.0333% return per unit of risk over the last 3 months. Banco de Chile exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Banco De's Standard Deviation of 0.9769, risk adjusted performance of (0.03), and Mean Deviation of 0.7545 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of -0.0106, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Banco De are expected to decrease at a much lower rate. During the bear market, Banco De is likely to outperform the market. At this point, Banco de Chile has a negative expected return of -0.0327%. Please make sure to confirm Banco De's maximum drawdown, daily balance of power, period momentum indicator, as well as the relationship between the skewness and day typical price , to decide if Banco de Chile performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.73 |
Good predictability
Banco de Chile has good predictability. Overlapping area represents the amount of predictability between Banco De time series from 5th of July 2023 to 16th of March 2024 and 16th of March 2024 to 26th 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 Banco de Chile price movement. The serial correlation of 0.73 indicates that around 73.0% of current Banco De price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.73 | |
| Spearman Rank Test | 0.72 | |
| Residual Average | 0.0 | |
| Price Variance | 13.55 |
Banco de Chile lagged returns against current returns
Autocorrelation, which is Banco De 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 Banco De's stock expected returns. We can calculate the autocorrelation of Banco De returns to help us make a trade decision. For example, suppose you find that Banco De 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 |
Banco De 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 Banco De stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Banco De stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Banco De stock over time.
Current vs Lagged Prices |
| Timeline |
Banco De Lagged Returns
When evaluating Banco De's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Banco De stock have on its future price. Banco De 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, Banco De autocorrelation shows the relationship between Banco De stock current value and its past values and can show if there is a momentum factor associated with investing in Banco de Chile.
Regressed Prices |
| Timeline |
Pair Trading with Banco De
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 Banco De 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 Banco De will appreciate offsetting losses from the drop in the long position's value.Moving together with Banco Stock
Moving against Banco Stock
| 0.39 | AFPCAPITAL | AFP Capital SA | PairCorr |
The ability to find closely correlated positions to Banco De could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Banco De 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 Banco De - 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 Banco de Chile to buy it.
The correlation of Banco De 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 Banco De moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Banco de Chile 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 Banco De 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 Banco Stock Analysis
When running Banco De's price analysis, check to measure Banco De'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 Banco De is operating at the current time. Most of Banco De's value examination focuses on studying past and present price action to predict the probability of Banco De's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Banco De's price. Additionally, you may evaluate how the addition of Banco De to your portfolios can decrease your overall portfolio volatility.