Lizhan Environmental Stock Market Value

Symbol

Lizhan

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 Lizhan Environmental's pink sheet 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 Lizhan Environmental.

Lizhan Environmental Upside/Downside Indicators

Lizhan Environmental Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Lizhan Environmental's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lizhan Environmental's standard deviation. In reality, there are many statistical measures that can use Lizhan Environmental historical prices to predict the future Lizhan Environmental's volatility.

Autocorrelation, which is Lizhan Environmental pink sheet'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 Lizhan Environmental's pink sheet expected returns. We can calculate the autocorrelation of Lizhan Environmental returns to help us make a trade decision. For example, suppose you find that Lizhan Environmental has exhibited high autocorrelation historically, and you observe that the pink sheet is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Lizhan Environmental pink sheet is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lizhan Environmental pink sheet is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lizhan Environmental pink sheet over time.

When evaluating Lizhan Environmental's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lizhan Environmental pink sheet have on its future price. Lizhan Environmental 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, Lizhan Environmental autocorrelation shows the relationship between Lizhan Environmental pink sheet current value and its past values and can show if there is a momentum factor associated with investing in Lizhan Environmental.

Lizhan Environmental financial ratios help investors to determine whether Lizhan Pink Sheet 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 Lizhan with respect to the benefits of owning Lizhan Environmental security.