Direct Line (Germany) Market Value
| D1LN Stock | EUR 2.80 0.06 2.19% |
| Symbol | Direct |
Direct Line '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 Direct Line'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 Direct Line.
| 12/13/2022 |
| 12/02/2024 |
If you would invest 0.00 in Direct Line on December 13, 2022 and sell it all today you would earn a total of 0.00 from holding Direct Line Insurance or generate 0.0% return on investment in Direct Line over 720 days. Direct Line is related to or competes with Allianz SE, Superior Plus, NMI Holdings, Origin Agritech, SIVERS SEMICONDUCTORS, Talanx AG, and Identiv. Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom More
Direct Line 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 Direct Line'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 Direct Line Insurance upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.31 | |||
| Information Ratio | 0.0707 | |||
| Maximum Drawdown | 10.87 | |||
| Value At Risk | (3.64) | |||
| Potential Upside | 3.65 |
Direct Line Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Direct Line's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Direct Line's standard deviation. In reality, there are many statistical measures that can use Direct Line historical prices to predict the future Direct Line's volatility.| Risk Adjusted Performance | 0.0878 | |||
| Jensen Alpha | 0.3128 | |||
| Total Risk Alpha | (0.27) | |||
| Sortino Ratio | 0.1258 | |||
| Treynor Ratio | 0.5076 |
Direct Line Insurance Backtested Returns
Direct Line appears to be very risky, given 3 months investment horizon. Direct Line Insurance secures Sharpe Ratio (or Efficiency) of 0.0906, which denotes the company had a 0.0906% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Direct Line Insurance, which you can use to evaluate the volatility of the firm. Please utilize Direct Line's Coefficient Of Variation of 959.05, mean deviation of 2.1, and Downside Deviation of 2.31 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Direct Line holds a performance score of 7. The firm shows a Beta (market volatility) of 0.82, which means possible diversification benefits within a given portfolio. As returns on the market increase, Direct Line's returns are expected to increase less than the market. However, during the bear market, the loss of holding Direct Line is expected to be smaller as well. Please check Direct Line's sortino ratio, maximum drawdown, and the relationship between the total risk alpha and treynor ratio , to make a quick decision on whether Direct Line's price patterns will revert.
Auto-correlation | -0.28 |
Weak reverse predictability
Direct Line Insurance has weak reverse predictability. Overlapping area represents the amount of predictability between Direct Line time series from 13th of December 2022 to 8th of December 2023 and 8th of December 2023 to 2nd 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 Direct Line Insurance price movement. The serial correlation of -0.28 indicates that nearly 28.0% of current Direct Line price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.28 | |
| Spearman Rank Test | 0.03 | |
| Residual Average | 0.0 | |
| Price Variance | 0.03 |
Direct Line Insurance lagged returns against current returns
Autocorrelation, which is Direct Line 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 Direct Line's stock expected returns. We can calculate the autocorrelation of Direct Line returns to help us make a trade decision. For example, suppose you find that Direct Line 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 |
Direct Line 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 Direct Line stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Direct Line stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Direct Line stock over time.
Current vs Lagged Prices |
| Timeline |
Direct Line Lagged Returns
When evaluating Direct Line's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Direct Line stock have on its future price. Direct Line 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, Direct Line autocorrelation shows the relationship between Direct Line stock current value and its past values and can show if there is a momentum factor associated with investing in Direct Line Insurance.
Regressed Prices |
| Timeline |
Currently Active Assets on Macroaxis
Other Information on Investing in Direct Stock
Direct Line financial ratios help investors to determine whether Direct 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 Direct with respect to the benefits of owning Direct Line security.