Erdene Resource Development Stock Market Value
| ERD Stock | CAD 0.59 0.01 1.67% |
| Symbol | Erdene |
Erdene Resource '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 Erdene Resource'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 Erdene Resource.
| 06/10/2023 |
| 12/01/2024 |
If you would invest 0.00 in Erdene Resource on June 10, 2023 and sell it all today you would earn a total of 0.00 from holding Erdene Resource Development or generate 0.0% return on investment in Erdene Resource over 540 days. Erdene Resource is related to or competes with Canagold Resources, Grande Portage, and Bluestone Resources. Erdene Resource Development Corporation focuses in the acquisition, exploration, and development of precious and base mi... More
Erdene Resource 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 Erdene Resource'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 Erdene Resource Development upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.7 | |||
| Information Ratio | 0.0944 | |||
| Maximum Drawdown | 19.11 | |||
| Value At Risk | (5.63) | |||
| Potential Upside | 7.69 |
Erdene Resource Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Erdene Resource's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Erdene Resource's standard deviation. In reality, there are many statistical measures that can use Erdene Resource historical prices to predict the future Erdene Resource's volatility.| Risk Adjusted Performance | 0.1082 | |||
| Jensen Alpha | 0.4212 | |||
| Total Risk Alpha | (0.14) | |||
| Sortino Ratio | 0.0958 | |||
| Treynor Ratio | 1.02 |
Erdene Resource Deve Backtested Returns
Erdene Resource appears to be abnormally volatile, given 3 months investment horizon. Erdene Resource Deve secures Sharpe Ratio (or Efficiency) of 0.13, which denotes the company had a 0.13% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for Erdene Resource Development, which you can use to evaluate the volatility of the firm. Please utilize Erdene Resource's Downside Deviation of 3.7, mean deviation of 2.66, and Semi Deviation of 2.59 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Erdene Resource holds a performance score of 10. The firm shows a Beta (market volatility) of 0.47, which means possible diversification benefits within a given portfolio. As returns on the market increase, Erdene Resource's returns are expected to increase less than the market. However, during the bear market, the loss of holding Erdene Resource is expected to be smaller as well. Please check Erdene Resource's treynor ratio, expected short fall, and the relationship between the jensen alpha and potential upside , to make a quick decision on whether Erdene Resource's price patterns will revert.
Auto-correlation | -0.2 |
Insignificant reverse predictability
Erdene Resource Development has insignificant reverse predictability. Overlapping area represents the amount of predictability between Erdene Resource time series from 10th of June 2023 to 6th of March 2024 and 6th of March 2024 to 1st 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 Erdene Resource Deve price movement. The serial correlation of -0.2 indicates that over 20.0% of current Erdene Resource price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.2 | |
| Spearman Rank Test | -0.27 | |
| Residual Average | 0.0 | |
| Price Variance | 0.01 |
Erdene Resource Deve lagged returns against current returns
Autocorrelation, which is Erdene Resource 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 Erdene Resource's stock expected returns. We can calculate the autocorrelation of Erdene Resource returns to help us make a trade decision. For example, suppose you find that Erdene Resource 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 |
Erdene Resource 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 Erdene Resource stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Erdene Resource stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Erdene Resource stock over time.
Current vs Lagged Prices |
| Timeline |
Erdene Resource Lagged Returns
When evaluating Erdene Resource's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Erdene Resource stock have on its future price. Erdene Resource 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, Erdene Resource autocorrelation shows the relationship between Erdene Resource stock current value and its past values and can show if there is a momentum factor associated with investing in Erdene Resource Development.
Regressed Prices |
| Timeline |
Pair Trading with Erdene Resource
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Erdene Resource position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Erdene Resource will appreciate offsetting losses from the drop in the long position's value.Moving together with Erdene Stock
| 0.7 | AG | First Majestic Silver | PairCorr |
| 0.63 | IE | Ivanhoe Energy | PairCorr |
| 0.74 | FDY | Faraday Copper Corp | PairCorr |
The ability to find closely correlated positions to Erdene Resource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Erdene Resource when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Erdene Resource - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Erdene Resource Development to buy it.
The correlation of Erdene Resource is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Erdene Resource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Erdene Resource Deve moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Erdene Resource can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Erdene Stock
Erdene Resource financial ratios help investors to determine whether Erdene 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 Erdene with respect to the benefits of owning Erdene Resource security.