Paramount Spinning (Pakistan) Market Value
| PASM Stock | 5.30 0.02 0.38% |
| Symbol | Paramount |
Paramount Spinning '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 Paramount Spinning'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 Paramount Spinning.
| 11/30/2023 |
| 11/24/2024 |
If you would invest 0.00 in Paramount Spinning on November 30, 2023 and sell it all today you would earn a total of 0.00 from holding Paramount Spinning Mills or generate 0.0% return on investment in Paramount Spinning over 360 days.
Paramount Spinning 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 Paramount Spinning'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 Paramount Spinning Mills upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 7.64 | |||
| Information Ratio | 0.024 | |||
| Maximum Drawdown | 36.96 | |||
| Value At Risk | (10.19) | |||
| Potential Upside | 13.24 |
Paramount Spinning Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Paramount Spinning's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Paramount Spinning's standard deviation. In reality, there are many statistical measures that can use Paramount Spinning historical prices to predict the future Paramount Spinning's volatility.| Risk Adjusted Performance | 0.0402 | |||
| Jensen Alpha | 0.1696 | |||
| Total Risk Alpha | (0.93) | |||
| Sortino Ratio | 0.0248 | |||
| Treynor Ratio | 0.2662 |
Paramount Spinning Mills Backtested Returns
Paramount Spinning appears to be very risky, given 3 months investment horizon. Paramount Spinning Mills maintains Sharpe Ratio (i.e., Efficiency) of 0.0406, which implies the firm had a 0.0406% return per unit of risk over the last 3 months. We have found thirty technical indicators for Paramount Spinning Mills, which you can use to evaluate the volatility of the company. Please evaluate Paramount Spinning's Semi Deviation of 6.78, risk adjusted performance of 0.0402, and Coefficient Of Variation of 2463.32 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Paramount Spinning holds a performance score of 3. The company holds a Beta of 1.17, which implies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Paramount Spinning will likely underperform. Please check Paramount Spinning's sortino ratio, maximum drawdown, potential upside, as well as the relationship between the treynor ratio and value at risk , to make a quick decision on whether Paramount Spinning's historical price patterns will revert.
Auto-correlation | 0.00 |
No correlation between past and present
Paramount Spinning Mills has no correlation between past and present. Overlapping area represents the amount of predictability between Paramount Spinning time series from 30th of November 2023 to 28th of May 2024 and 28th of May 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 Paramount Spinning Mills price movement. The serial correlation of 0.0 indicates that just 0.0% of current Paramount Spinning price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.0 | |
| Spearman Rank Test | 0.0 | |
| Residual Average | 0.0 | |
| Price Variance | 0.0 |
Paramount Spinning Mills lagged returns against current returns
Autocorrelation, which is Paramount Spinning 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 Paramount Spinning's stock expected returns. We can calculate the autocorrelation of Paramount Spinning returns to help us make a trade decision. For example, suppose you find that Paramount Spinning 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 |
Paramount Spinning 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 Paramount Spinning stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Paramount Spinning stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Paramount Spinning stock over time.
Current vs Lagged Prices |
| Timeline |
Paramount Spinning Lagged Returns
When evaluating Paramount Spinning's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Paramount Spinning stock have on its future price. Paramount Spinning 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, Paramount Spinning autocorrelation shows the relationship between Paramount Spinning stock current value and its past values and can show if there is a momentum factor associated with investing in Paramount Spinning Mills.
Regressed Prices |
| Timeline |
Pair Trading with Paramount Spinning
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 Paramount Spinning 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 Paramount Spinning will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Paramount Spinning could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Paramount Spinning 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 Paramount Spinning - 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 Paramount Spinning Mills to buy it.
The correlation of Paramount Spinning 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 Paramount Spinning moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Paramount Spinning Mills 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 Paramount Spinning 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.