Loncor Resources Stock Market Value
| LN Stock | CAD 0.46 0.01 2.22% |
| Symbol | Loncor |
Loncor Resources Price To Book Ratio
Loncor Resources '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 Loncor Resources' 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 Loncor Resources.
| 04/06/2024 |
| 12/02/2024 |
If you would invest 0.00 in Loncor Resources on April 6, 2024 and sell it all today you would earn a total of 0.00 from holding Loncor Resources or generate 0.0% return on investment in Loncor Resources over 240 days. Loncor Resources is related to or competes with Algoma Steel, Champion Iron, European Residential, Financial, Rubicon Organics, Linamar, and Amazon CDR. Loncor Resources Inc., a gold exploration company, engages in the acquisition, exploration, and development of precious ... More
Loncor Resources 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 Loncor Resources' 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 Loncor Resources upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.06 | |||
| Information Ratio | 0.0793 | |||
| Maximum Drawdown | 13.35 | |||
| Value At Risk | (4.26) | |||
| Potential Upside | 7.32 |
Loncor Resources Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Loncor Resources' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Loncor Resources' standard deviation. In reality, there are many statistical measures that can use Loncor Resources historical prices to predict the future Loncor Resources' volatility.| Risk Adjusted Performance | 0.1035 | |||
| Jensen Alpha | 0.4196 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.077 | |||
| Treynor Ratio | (0.82) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Loncor Resources' 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.
Loncor Resources Backtested Returns
Loncor Resources appears to be abnormally volatile, given 3 months investment horizon. Loncor Resources has Sharpe Ratio of 0.13, which conveys that the firm had a 0.13% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Loncor Resources, which you can use to evaluate the volatility of the firm. Please exercise Loncor Resources' Mean Deviation of 2.15, downside deviation of 3.06, and Risk Adjusted Performance of 0.1035 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Loncor Resources holds a performance score of 10. The company secures a Beta (Market Risk) of -0.44, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Loncor Resources are expected to decrease at a much lower rate. During the bear market, Loncor Resources is likely to outperform the market. Please check Loncor Resources' maximum drawdown and the relationship between the expected short fall and period momentum indicator , to make a quick decision on whether Loncor Resources' current price movements will revert.
Auto-correlation | -0.08 |
Very weak reverse predictability
Loncor Resources has very weak reverse predictability. Overlapping area represents the amount of predictability between Loncor Resources time series from 6th of April 2024 to 4th of August 2024 and 4th of August 2024 to 2nd 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 Loncor Resources price movement. The serial correlation of -0.08 indicates that barely 8.0% of current Loncor Resources price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.08 | |
| Spearman Rank Test | 0.28 | |
| Residual Average | 0.0 | |
| Price Variance | 0.0 |
Loncor Resources lagged returns against current returns
Autocorrelation, which is Loncor Resources 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 Loncor Resources' stock expected returns. We can calculate the autocorrelation of Loncor Resources returns to help us make a trade decision. For example, suppose you find that Loncor Resources 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 |
Loncor Resources 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 Loncor Resources stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Loncor Resources stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Loncor Resources stock over time.
Current vs Lagged Prices |
| Timeline |
Loncor Resources Lagged Returns
When evaluating Loncor Resources' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Loncor Resources stock have on its future price. Loncor Resources 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, Loncor Resources autocorrelation shows the relationship between Loncor Resources stock current value and its past values and can show if there is a momentum factor associated with investing in Loncor Resources.
Regressed Prices |
| Timeline |
Pair Trading with Loncor Resources
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 Loncor Resources 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 Loncor Resources will appreciate offsetting losses from the drop in the long position's value.Moving together with Loncor Stock
| 0.67 | AG | First Majestic Silver | PairCorr |
| 0.84 | IE | Ivanhoe Energy | PairCorr |
| 0.75 | FDY | Faraday Copper Corp | PairCorr |
Moving against Loncor Stock
The ability to find closely correlated positions to Loncor Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Loncor Resources 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 Loncor Resources - 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 Loncor Resources to buy it.
The correlation of Loncor Resources 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 Loncor Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Loncor Resources 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 Loncor Resources 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 Loncor Stock
Loncor Resources financial ratios help investors to determine whether Loncor 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 Loncor with respect to the benefits of owning Loncor Resources security.