Direct Line (UK) Market Value
| DLG Stock | 159.00 0.80 0.51% |
| 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.
| 05/31/2024 |
| 11/27/2024 |
If you would invest 0.00 in Direct Line on May 31, 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 180 days. Direct Line is related to or competes with Argo Group, Quantum Blockchain, and Malvern International. Direct Line is entity of United Kingdom. It is traded as Stock on LSE exchange. 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.
| Information Ratio | (0.24) | |||
| Maximum Drawdown | 8.5 | |||
| Value At Risk | (2.44) | |||
| Potential Upside | 1.8 |
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 | (0.11) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.44) | |||
| Treynor Ratio | (0.69) |
Direct Line Insurance Backtested Returns
Direct Line Insurance secures Sharpe Ratio (or Efficiency) of -0.18, which denotes the company had a -0.18% return per unit of risk over the last 3 months. Direct Line Insurance exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Direct Line's Standard Deviation of 1.43, mean deviation of 1.06, and Variance of 2.05 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.32, 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. At this point, Direct Line Insurance has a negative expected return of -0.26%. Please make sure to confirm Direct Line's kurtosis, day median price, and the relationship between the potential upside and daily balance of power , to decide if Direct Line Insurance performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.71 |
Good predictability
Direct Line Insurance has good predictability. Overlapping area represents the amount of predictability between Direct Line time series from 31st of May 2024 to 29th of August 2024 and 29th of August 2024 to 27th 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 0.71 indicates that around 71.0% of current Direct Line price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.71 | |
| Spearman Rank Test | 0.72 | |
| Residual Average | 0.0 | |
| Price Variance | 114.31 |
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 |
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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.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.