Direct Line Insurance Stock Market Value
| DIISY Stock | USD 9.41 1.52 19.26% |
| 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 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 Direct Line.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Direct Line on October 30, 2024 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 30 days. Direct Line is related to or competes with Commonwealth Bank, Barings BDC, PennantPark Floating, SunOpta, Grocery Outlet, Chiba Bank, and Marfrig Global. 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 pink sheet 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.
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 9.21 | |||
| Value At Risk | (4.19) | |||
| Potential Upside | 3.13 |
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 | (0.0003) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.49) | |||
| Treynor Ratio | (1.80) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Direct Line'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.
Direct Line Insurance Backtested Returns
Direct Line Insurance secures Sharpe Ratio (or Efficiency) of -0.0172, which denotes the company had a -0.0172% return per unit of risk over the last 3 months. Direct Line Insurance exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Direct Line's Mean Deviation of 1.33, variance of 9.07, and Standard Deviation of 3.01 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.0226, which means not very significant fluctuations relative to the market. 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. At this point, Direct Line Insurance has a negative expected return of -0.053%. Please make sure to confirm Direct Line's total risk alpha, kurtosis, as well as the relationship between the Kurtosis and market facilitation index , to decide if Direct Line Insurance performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.9 |
Excellent reverse predictability
Direct Line Insurance has excellent reverse predictability. Overlapping area represents the amount of predictability between Direct Line time series from 30th of October 2024 to 14th of November 2024 and 14th of November 2024 to 29th 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 Direct Line Insurance price movement. The serial correlation of -0.9 indicates that approximately 90.0% of current Direct Line price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.9 | |
| Spearman Rank Test | 0.53 | |
| Residual Average | 0.0 | |
| Price Variance | 0.36 |
Direct Line Insurance lagged returns against current returns
Autocorrelation, which is Direct Line 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 Direct Line's pink sheet 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 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.
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 pink sheet is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Direct Line pink sheet is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Direct Line pink sheet 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 pink sheet 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 pink sheet 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 |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Direct Pink Sheet Analysis
When running Direct Line's price analysis, check to measure Direct Line'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 Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.