Honda (Brazil) Market Value
| HOND34 Stock | BRL 155.40 3.51 2.31% |
| Symbol | Honda |
Honda '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 Honda'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 Honda.
| 10/25/2024 |
| 11/24/2024 |
If you would invest 0.00 in Honda on October 25, 2024 and sell it all today you would earn a total of 0.00 from holding Honda Motor Co or generate 0.0% return on investment in Honda over 30 days. Honda is related to or competes with Paycom Software, Fidelity National, Salesforce, Cognizant Technology, Extra Space, Verizon Communications, and Take Two. More
Honda 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 Honda'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 Honda Motor Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.15) | |||
| Maximum Drawdown | 12.76 | |||
| Value At Risk | (2.50) | |||
| Potential Upside | 2.31 |
Honda Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Honda's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Honda's standard deviation. In reality, there are many statistical measures that can use Honda historical prices to predict the future Honda's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.14) | |||
| Total Risk Alpha | (0.45) | |||
| Treynor Ratio | 1.28 |
Honda Motor Backtested Returns
Honda Motor holds Efficiency (Sharpe) Ratio of -0.0816, which attests that the entity had a -0.0816% return per unit of risk over the last 3 months. Honda Motor exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Honda's Market Risk Adjusted Performance of 1.29, standard deviation of 1.86, and Risk Adjusted Performance of (0.05) to validate the risk estimate we provide. The company retains a Market Volatility (i.e., Beta) of -0.12, which attests to not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Honda are expected to decrease at a much lower rate. During the bear market, Honda is likely to outperform the market. At this point, Honda Motor has a negative expected return of -0.15%. Please make sure to check out Honda's maximum drawdown, potential upside, and the relationship between the treynor ratio and value at risk , to decide if Honda Motor performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.54 |
Good reverse predictability
Honda Motor Co has good reverse predictability. Overlapping area represents the amount of predictability between Honda time series from 25th of October 2024 to 9th of November 2024 and 9th of November 2024 to 24th 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 Honda Motor price movement. The serial correlation of -0.54 indicates that about 54.0% of current Honda price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.54 | |
| Spearman Rank Test | 0.13 | |
| Residual Average | 0.0 | |
| Price Variance | 4.04 |
Honda Motor lagged returns against current returns
Autocorrelation, which is Honda 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 Honda's stock expected returns. We can calculate the autocorrelation of Honda returns to help us make a trade decision. For example, suppose you find that Honda 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 |
Honda 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 Honda stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Honda stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Honda stock over time.
Current vs Lagged Prices |
| Timeline |
Honda Lagged Returns
When evaluating Honda's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Honda stock have on its future price. Honda 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, Honda autocorrelation shows the relationship between Honda stock current value and its past values and can show if there is a momentum factor associated with investing in Honda Motor Co.
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.Additional Information and Resources on Investing in Honda Stock
When determining whether Honda Motor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honda's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honda Motor Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honda Motor Co Stock:Check out Honda Correlation, Honda Volatility and Honda Alpha and Beta module to complement your research on Honda. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Honda technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.