China Steel Stock Market Value

Symbol

China

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 China Steel'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 China Steel.

China Steel Upside/Downside Indicators

China Steel Market Risk Indicators

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

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of China Steel'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 China Steel 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 China Steel's pink sheet expected returns. We can calculate the autocorrelation of China Steel returns to help us make a trade decision. For example, suppose you find that China Steel 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 China Steel pink sheet is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if China Steel pink sheet is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in China Steel pink sheet over time.

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

China Steel financial ratios help investors to determine whether China 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 China with respect to the benefits of owning China Steel security.