Lucara Diamond Corp Stock Market Value
| LUC Stock | CAD 0.50 0.01 2.04% |
| Symbol | Lucara |
Lucara Diamond Corp Price To Book Ratio
Lucara Diamond '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 Lucara Diamond'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 Lucara Diamond.
| 05/30/2024 |
| 11/26/2024 |
If you would invest 0.00 in Lucara Diamond on May 30, 2024 and sell it all today you would earn a total of 0.00 from holding Lucara Diamond Corp or generate 0.0% return on investment in Lucara Diamond over 180 days. Lucara Diamond is related to or competes with First Majestic, Ivanhoe Energy, Orezone Gold, and Faraday Copper. Lucara Diamond Corp., a diamond mining company, engages in the acquisition, exploration, development, and operation of d... More
Lucara Diamond 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 Lucara Diamond'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 Lucara Diamond Corp upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.69 | |||
| Information Ratio | 0.1125 | |||
| Maximum Drawdown | 45.25 | |||
| Value At Risk | (6.12) | |||
| Potential Upside | 7.14 |
Lucara Diamond Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lucara Diamond's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lucara Diamond's standard deviation. In reality, there are many statistical measures that can use Lucara Diamond historical prices to predict the future Lucara Diamond's volatility.| Risk Adjusted Performance | 0.1117 | |||
| Jensen Alpha | 0.7159 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.1385 | |||
| Treynor Ratio | 1.76 |
Lucara Diamond Corp Backtested Returns
Lucara Diamond appears to be abnormally volatile, given 3 months investment horizon. Lucara Diamond Corp has Sharpe Ratio of 0.096, which conveys that the firm had a 0.096% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Lucara Diamond, which you can use to evaluate the volatility of the firm. Please exercise Lucara Diamond's Risk Adjusted Performance of 0.1117, downside deviation of 4.69, and Mean Deviation of 3.42 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Lucara Diamond holds a performance score of 7. 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, Lucara Diamond's returns are expected to increase less than the market. However, during the bear market, the loss of holding Lucara Diamond is expected to be smaller as well. Please check Lucara Diamond's maximum drawdown, skewness, and the relationship between the total risk alpha and downside variance , to make a quick decision on whether Lucara Diamond's current price movements will revert.
Auto-correlation | -0.19 |
Insignificant reverse predictability
Lucara Diamond Corp has insignificant reverse predictability. Overlapping area represents the amount of predictability between Lucara Diamond time series from 30th of May 2024 to 28th of August 2024 and 28th of August 2024 to 26th 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 Lucara Diamond Corp price movement. The serial correlation of -0.19 indicates that over 19.0% of current Lucara Diamond price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.19 | |
| Spearman Rank Test | -0.21 | |
| Residual Average | 0.0 | |
| Price Variance | 0.0 |
Lucara Diamond Corp lagged returns against current returns
Autocorrelation, which is Lucara Diamond 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 Lucara Diamond's stock expected returns. We can calculate the autocorrelation of Lucara Diamond returns to help us make a trade decision. For example, suppose you find that Lucara Diamond 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 |
Lucara Diamond 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 Lucara Diamond stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lucara Diamond stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lucara Diamond stock over time.
Current vs Lagged Prices |
| Timeline |
Lucara Diamond Lagged Returns
When evaluating Lucara Diamond's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lucara Diamond stock have on its future price. Lucara Diamond 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, Lucara Diamond autocorrelation shows the relationship between Lucara Diamond stock current value and its past values and can show if there is a momentum factor associated with investing in Lucara Diamond Corp.
Regressed Prices |
| Timeline |
Pair Trading with Lucara Diamond
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 Lucara Diamond 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 Lucara Diamond will appreciate offsetting losses from the drop in the long position's value.Moving together with Lucara Stock
| 0.71 | AG | First Majestic Silver | PairCorr |
| 0.8 | IE | Ivanhoe Energy | PairCorr |
| 0.69 | FDY | Faraday Copper Corp | PairCorr |
Moving against Lucara Stock
The ability to find closely correlated positions to Lucara Diamond could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lucara Diamond 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 Lucara Diamond - 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 Lucara Diamond Corp to buy it.
The correlation of Lucara Diamond 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 Lucara Diamond moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lucara Diamond Corp 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 Lucara Diamond 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 Lucara Stock
Lucara Diamond financial ratios help investors to determine whether Lucara 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 Lucara with respect to the benefits of owning Lucara Diamond security.