Habib Bank (Pakistan) Market Value
| HBL Stock | 181.00 3.56 2.01% |
| Symbol | Habib |
Habib Bank '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 Habib Bank'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 Habib Bank.
| 06/08/2023 |
| 11/29/2024 |
If you would invest 0.00 in Habib Bank on June 8, 2023 and sell it all today you would earn a total of 0.00 from holding Habib Bank or generate 0.0% return on investment in Habib Bank over 540 days. Habib Bank is related to or competes with WorldCall Telecom, Sindh Modaraba, Adamjee Insurance, Security Investment, and Habib Insurance. More
Habib Bank 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 Habib Bank'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 Habib Bank upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.57 | |||
| Information Ratio | 0.195 | |||
| Maximum Drawdown | 11.38 | |||
| Value At Risk | (2.27) | |||
| Potential Upside | 6.7 |
Habib Bank Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Habib Bank's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Habib Bank's standard deviation. In reality, there are many statistical measures that can use Habib Bank historical prices to predict the future Habib Bank's volatility.| Risk Adjusted Performance | 0.1941 | |||
| Jensen Alpha | 0.637 | |||
| Total Risk Alpha | 0.2288 | |||
| Sortino Ratio | 0.3169 | |||
| Treynor Ratio | (2.95) |
Habib Bank Backtested Returns
Habib Bank appears to be very steady, given 3 months investment horizon. Habib Bank holds Efficiency (Sharpe) Ratio of 0.29, which attests that the entity had a 0.29% return per unit of risk over the last 3 months. By evaluating Habib Bank's technical indicators, you can evaluate if the expected return of 0.73% is justified by implied risk. Please utilize Habib Bank's Risk Adjusted Performance of 0.1941, downside deviation of 1.57, and Market Risk Adjusted Performance of (2.94) to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Habib Bank holds a performance score of 22. The company retains a Market Volatility (i.e., Beta) of -0.21, which attests to not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Habib Bank are expected to decrease at a much lower rate. During the bear market, Habib Bank is likely to outperform the market. Please check Habib Bank's jensen alpha, maximum drawdown, and the relationship between the coefficient of variation and sortino ratio , to make a quick decision on whether Habib Bank's current trending patterns will revert.
Auto-correlation | 0.63 |
Good predictability
Habib Bank has good predictability. Overlapping area represents the amount of predictability between Habib Bank 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 Habib Bank price movement. The serial correlation of 0.63 indicates that roughly 63.0% of current Habib Bank price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.63 | |
| Spearman Rank Test | 0.64 | |
| Residual Average | 0.0 | |
| Price Variance | 245.79 |
Habib Bank lagged returns against current returns
Autocorrelation, which is Habib Bank 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 Habib Bank's stock expected returns. We can calculate the autocorrelation of Habib Bank returns to help us make a trade decision. For example, suppose you find that Habib Bank 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 |
Habib Bank 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 Habib Bank stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Habib Bank stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Habib Bank stock over time.
Current vs Lagged Prices |
| Timeline |
Habib Bank Lagged Returns
When evaluating Habib Bank's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Habib Bank stock have on its future price. Habib Bank 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, Habib Bank autocorrelation shows the relationship between Habib Bank stock current value and its past values and can show if there is a momentum factor associated with investing in Habib Bank.
Regressed Prices |
| Timeline |
Pair Trading with Habib Bank
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 Habib Bank 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 Habib Bank will appreciate offsetting losses from the drop in the long position's value.Moving together with Habib Stock
Moving against Habib Stock
The ability to find closely correlated positions to Habib Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Habib Bank 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 Habib Bank - 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 Habib Bank to buy it.
The correlation of Habib Bank 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 Habib Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Habib Bank 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 Habib Bank 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.Additional Tools for Habib Stock Analysis
When running Habib Bank's price analysis, check to measure Habib Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Habib Bank is operating at the current time. Most of Habib Bank's value examination focuses on studying past and present price action to predict the probability of Habib Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Habib Bank's price. Additionally, you may evaluate how the addition of Habib Bank to your portfolios can decrease your overall portfolio volatility.