Eastern Merchants (Sri Lanka) Market Value
| EMERN0000 | LKR 6.50 0.10 1.52% |
| Symbol | Eastern |
Please note, there is a significant difference between Eastern Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if Eastern Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eastern Merchants' 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.
Eastern Merchants '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 Eastern Merchants' 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 Eastern Merchants.
| 06/08/2023 |
| 11/29/2024 |
If you would invest 0.00 in Eastern Merchants on June 8, 2023 and sell it all today you would earn a total of 0.00 from holding Eastern Merchants PLC or generate 0.0% return on investment in Eastern Merchants over 540 days. More
Eastern Merchants 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 Eastern Merchants' 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 Eastern Merchants PLC upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.65 | |||
| Information Ratio | (0.03) | |||
| Maximum Drawdown | 14.8 | |||
| Value At Risk | (3.33) | |||
| Potential Upside | 4.55 |
Eastern Merchants Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Eastern Merchants' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Eastern Merchants' standard deviation. In reality, there are many statistical measures that can use Eastern Merchants historical prices to predict the future Eastern Merchants' volatility.| Risk Adjusted Performance | 0.0185 | |||
| Jensen Alpha | 0.0517 | |||
| Total Risk Alpha | (0.40) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | (0.19) |
Eastern Merchants PLC Backtested Returns
At this point, Eastern Merchants is slightly risky. Eastern Merchants PLC secures Sharpe Ratio (or Efficiency) of 0.0642, which denotes the company had a 0.0642% return per unit of risk over the last 3 months. We have found thirty technical indicators for Eastern Merchants PLC, which you can use to evaluate the volatility of the firm. Please confirm Eastern Merchants' Mean Deviation of 1.93, downside deviation of 3.65, and Coefficient Of Variation of 6888.86 to check if the risk estimate we provide is consistent with the expected return of 0.17%. Eastern Merchants has a performance score of 5 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.17, which means not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Eastern Merchants are expected to decrease at a much lower rate. During the bear market, Eastern Merchants is likely to outperform the market. Eastern Merchants PLC right now shows a risk of 2.65%. Please confirm Eastern Merchants PLC skewness, and the relationship between the value at risk and day median price , to decide if Eastern Merchants PLC will be following its price patterns.
Auto-correlation | 0.61 |
Good predictability
Eastern Merchants PLC has good predictability. Overlapping area represents the amount of predictability between Eastern Merchants time series from 8th of June 2023 to 4th of March 2024 and 4th of March 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 Eastern Merchants PLC price movement. The serial correlation of 0.61 indicates that roughly 61.0% of current Eastern Merchants price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.61 | |
| Spearman Rank Test | 0.54 | |
| Residual Average | 0.0 | |
| Price Variance | 0.21 |
Eastern Merchants PLC lagged returns against current returns
Autocorrelation, which is Eastern Merchants 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 Eastern Merchants' stock expected returns. We can calculate the autocorrelation of Eastern Merchants returns to help us make a trade decision. For example, suppose you find that Eastern Merchants 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 |
Eastern Merchants 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 Eastern Merchants stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Eastern Merchants stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Eastern Merchants stock over time.
Current vs Lagged Prices |
| Timeline |
Eastern Merchants Lagged Returns
When evaluating Eastern Merchants' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Eastern Merchants stock have on its future price. Eastern Merchants 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, Eastern Merchants autocorrelation shows the relationship between Eastern Merchants stock current value and its past values and can show if there is a momentum factor associated with investing in Eastern Merchants PLC.
Regressed Prices |
| Timeline |
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Eastern Merchants financial ratios help investors to determine whether Eastern 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 Eastern with respect to the benefits of owning Eastern Merchants security.