NetSol Technologies (Pakistan) Market Value
| NETSOL Stock | 156.77 4.60 2.85% |
| Symbol | NetSol |
NetSol Technologies '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 NetSol Technologies' 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 NetSol Technologies.
| 12/24/2024 |
| 01/23/2025 |
If you would invest 0.00 in NetSol Technologies on December 24, 2024 and sell it all today you would earn a total of 0.00 from holding NetSol Technologies or generate 0.0% return on investment in NetSol Technologies over 30 days. NetSol Technologies is related to or competes with ITTEFAQ Iron, Reliance Insurance, International Steels, TPL Insurance, MCB Bank, Century Insurance, and EFU General. More
NetSol Technologies 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 NetSol Technologies' 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 NetSol Technologies upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.76 | |||
| Information Ratio | 0.0985 | |||
| Maximum Drawdown | 13.7 | |||
| Value At Risk | (5.23) | |||
| Potential Upside | 5.58 |
NetSol Technologies Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for NetSol Technologies' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as NetSol Technologies' standard deviation. In reality, there are many statistical measures that can use NetSol Technologies historical prices to predict the future NetSol Technologies' volatility.| Risk Adjusted Performance | 0.1004 | |||
| Jensen Alpha | 0.2846 | |||
| Total Risk Alpha | 0.2242 | |||
| Sortino Ratio | 0.1037 | |||
| Treynor Ratio | 0.2945 |
NetSol Technologies Backtested Returns
NetSol Technologies appears to be very steady, given 3 months investment horizon. NetSol Technologies has Sharpe Ratio of 0.11, which conveys that the firm had a 0.11 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for NetSol Technologies, which you can use to evaluate the volatility of the firm. Please exercise NetSol Technologies' Risk Adjusted Performance of 0.1004, downside deviation of 2.76, and Mean Deviation of 2.12 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, NetSol Technologies holds a performance score of 8. The company secures a Beta (Market Risk) of 1.06, which conveys a somewhat significant risk relative to the market. NetSol Technologies returns are very sensitive to returns on the market. As the market goes up or down, NetSol Technologies is expected to follow. Please check NetSol Technologies' potential upside, as well as the relationship between the kurtosis and day typical price , to make a quick decision on whether NetSol Technologies' current price movements will revert.
Auto-correlation | 0.42 |
Average predictability
NetSol Technologies has average predictability. Overlapping area represents the amount of predictability between NetSol Technologies time series from 24th of December 2024 to 8th of January 2025 and 8th of January 2025 to 23rd of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of NetSol Technologies price movement. The serial correlation of 0.42 indicates that just about 42.0% of current NetSol Technologies price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.42 | |
| Spearman Rank Test | 0.21 | |
| Residual Average | 0.0 | |
| Price Variance | 41.92 |
NetSol Technologies lagged returns against current returns
Autocorrelation, which is NetSol Technologies 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 NetSol Technologies' stock expected returns. We can calculate the autocorrelation of NetSol Technologies returns to help us make a trade decision. For example, suppose you find that NetSol Technologies 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 |
NetSol Technologies 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 NetSol Technologies stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if NetSol Technologies stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in NetSol Technologies stock over time.
Current vs Lagged Prices |
| Timeline |
NetSol Technologies Lagged Returns
When evaluating NetSol Technologies' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of NetSol Technologies stock have on its future price. NetSol Technologies 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, NetSol Technologies autocorrelation shows the relationship between NetSol Technologies stock current value and its past values and can show if there is a momentum factor associated with investing in NetSol Technologies.
Regressed Prices |
| Timeline |
Pair Trading with NetSol Technologies
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 NetSol Technologies 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 NetSol Technologies will appreciate offsetting losses from the drop in the long position's value.Moving together with NetSol Stock
| 0.7 | ENGRO | Engro | PairCorr |
| 0.82 | LUCK | Lucky Cement Earnings Call Today | PairCorr |
| 0.86 | HUBC | Hub Power | PairCorr |
| 0.93 | PTC | Pakistan Telecommunicatio | PairCorr |
The ability to find closely correlated positions to NetSol Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NetSol Technologies 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 NetSol Technologies - 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 NetSol Technologies to buy it.
The correlation of NetSol Technologies 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 NetSol Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NetSol Technologies 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 NetSol Technologies 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 Information and Resources on Investing in NetSol Stock
When determining whether NetSol Technologies is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if NetSol Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Netsol Technologies Stock. Highlighted below are key reports to facilitate an investment decision about Netsol Technologies Stock:Check out NetSol Technologies Correlation, NetSol Technologies Volatility and NetSol Technologies Alpha and Beta module to complement your research on NetSol Technologies. For information on how to trade NetSol Stock refer to our How to Trade NetSol Stock guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
NetSol Technologies 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.