Essential 40 Stock Etf Market Value
| ESN Etf | 15.72 0.03 0.19% |
| Symbol | Essential |
Essential '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 Essential's etf 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 Essential.
| 10/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in Essential on October 29, 2024 and sell it all today you would earn a total of 0.00 from holding Essential 40 Stock or generate 0.0% return on investment in Essential over 30 days.
Essential 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 Essential's etf 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 Essential 40 Stock upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.5471 | |||
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 3.15 | |||
| Value At Risk | (0.78) | |||
| Potential Upside | 0.8005 |
Essential Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Essential's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Essential's standard deviation. In reality, there are many statistical measures that can use Essential historical prices to predict the future Essential's volatility.| Risk Adjusted Performance | 0.0662 | |||
| Jensen Alpha | 0.0364 | |||
| Total Risk Alpha | (0.06) | |||
| Sortino Ratio | (0.13) | |||
| Treynor Ratio | 0.4667 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Essential'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.
Essential 40 Stock Backtested Returns
As of now, Essential Etf is very steady. Essential 40 Stock secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the etf had a 0.11% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Essential 40 Stock, which you can use to evaluate the volatility of the entity. Please confirm Essential's Mean Deviation of 0.5091, coefficient of variation of 1130.06, and Downside Deviation of 0.5471 to check if the risk estimate we provide is consistent with the expected return of 0.0686%. The etf shows a Beta (market volatility) of 0.11, which means not very significant fluctuations relative to the market. As returns on the market increase, Essential's returns are expected to increase less than the market. However, during the bear market, the loss of holding Essential is expected to be smaller as well.
Auto-correlation | 0.90 |
Excellent predictability
Essential 40 Stock has excellent predictability. Overlapping area represents the amount of predictability between Essential time series from 29th of October 2024 to 13th of November 2024 and 13th of November 2024 to 28th 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 Essential 40 Stock price movement. The serial correlation of 0.9 indicates that approximately 90.0% of current Essential price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.9 | |
| Spearman Rank Test | 0.55 | |
| Residual Average | 0.0 | |
| Price Variance | 0.02 |
Essential 40 Stock lagged returns against current returns
Autocorrelation, which is Essential etf'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 Essential's etf expected returns. We can calculate the autocorrelation of Essential returns to help us make a trade decision. For example, suppose you find that Essential has exhibited high autocorrelation historically, and you observe that the etf 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 |
Essential 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 Essential etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Essential etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Essential etf over time.
Current vs Lagged Prices |
| Timeline |
Essential Lagged Returns
When evaluating Essential's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Essential etf have on its future price. Essential 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, Essential autocorrelation shows the relationship between Essential etf current value and its past values and can show if there is a momentum factor associated with investing in Essential 40 Stock.
Regressed Prices |
| Timeline |
Pair Trading with Essential
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 Essential 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 Essential will appreciate offsetting losses from the drop in the long position's value.Moving together with Essential Etf
Moving against Essential Etf
| 0.39 | VUG | Vanguard Growth Index | PairCorr |
| 0.33 | IGV | iShares Expanded Tech | PairCorr |
| 0.33 | ITOT | iShares Core SP | PairCorr |
| 0.32 | VTI | Vanguard Total Stock | PairCorr |
| 0.32 | SPY | SPDR SP 500 Aggressive Push | PairCorr |
The ability to find closely correlated positions to Essential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essential 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 Essential - 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 Essential 40 Stock to buy it.
The correlation of Essential 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 Essential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essential 40 Stock 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 Essential 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.