Derwent London's market value is the price at which a share of Derwent London trades on a public exchange. It measures the collective expectations of Derwent London PLC investors about its performance. Derwent London is trading at 1950.00 as of the 19th of January 2025, a 1.09 percent increase since the beginning of the trading day. The stock's lowest day price was 1889.0. With this module, you can estimate the performance of a buy and hold strategy of Derwent London PLC and determine expected loss or profit from investing in Derwent London over a given investment horizon. Check out Derwent London Correlation, Derwent London Volatility and Derwent London Alpha and Beta module to complement your research on Derwent London.
Please note, there is a significant difference between Derwent London's value and its price as these two are different measures arrived at by different means. Investors typically determine if Derwent London is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Derwent London's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Derwent London '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 Derwent London'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 Derwent London.
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Derwent London'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 Derwent London PLC upside and downside potential and time the market with a certain degree of confidence.
Today, many novice investors tend to focus exclusively on investment returns with little concern for Derwent London's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Derwent London's standard deviation. In reality, there are many statistical measures that can use Derwent London historical prices to predict the future Derwent London's volatility.
Derwent London PLC secures Sharpe Ratio (or Efficiency) of -0.16, which denotes the company had a -0.16% return per unit of risk over the last 3 months. Derwent London PLC exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Derwent London's Mean Deviation of 0.9865, variance of 1.85, and Standard Deviation of 1.36 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.0573, which means not very significant fluctuations relative to the market. As returns on the market increase, Derwent London's returns are expected to increase less than the market. However, during the bear market, the loss of holding Derwent London is expected to be smaller as well. At this point, Derwent London PLC has a negative expected return of -0.22%. Please make sure to confirm Derwent London's maximum drawdown, kurtosis, day median price, as well as the relationship between the potential upside and daily balance of power , to decide if Derwent London PLC performance from the past will be repeated at some point in the near future.
Auto-correlation
-0.15
Insignificant reverse predictability
Derwent London PLC has insignificant reverse predictability. Overlapping area represents the amount of predictability between Derwent London time series from 20th of December 2024 to 4th of January 2025 and 4th of January 2025 to 19th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Derwent London PLC price movement. The serial correlation of -0.15 indicates that less than 15.0% of current Derwent London price fluctuation can be explain by its past prices.
Correlation Coefficient
-0.15
Spearman Rank Test
0.28
Residual Average
0.0
Price Variance
1802.62
Derwent London PLC lagged returns against current returns
Autocorrelation, which is Derwent London 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 Derwent London's stock expected returns. We can calculate the autocorrelation of Derwent London returns to help us make a trade decision. For example, suppose you find that Derwent London 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
Derwent London 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 Derwent London stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Derwent London stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Derwent London stock over time.
Current vs Lagged Prices
Timeline
Derwent London Lagged Returns
When evaluating Derwent London's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Derwent London stock have on its future price. Derwent London 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, Derwent London autocorrelation shows the relationship between Derwent London stock current value and its past values and can show if there is a momentum factor associated with investing in Derwent London PLC.
Regressed Prices
Timeline
Also Currently Popular
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.
Derwent London financial ratios help investors to determine whether Derwent 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 Derwent with respect to the benefits of owning Derwent London security.