Reto Eco Solutions Stock Market Value
| RETO Stock | USD 0.91 0.03 3.41% |
| Symbol | ReTo |
Is Construction Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ReTo Eco. If investors know ReTo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ReTo Eco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of ReTo Eco Solutions is measured differently than its book value, which is the value of ReTo that is recorded on the company's balance sheet. Investors also form their own opinion of ReTo Eco's value that differs from its market value or its book value, called intrinsic value, which is ReTo Eco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ReTo Eco's market value can be influenced by many factors that don't directly affect ReTo Eco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ReTo Eco's value and its price as these two are different measures arrived at by different means. Investors typically determine if ReTo Eco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ReTo Eco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
ReTo Eco '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 ReTo Eco'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 ReTo Eco.
| 08/24/2024 |
| 11/22/2024 |
If you would invest 0.00 in ReTo Eco on August 24, 2024 and sell it all today you would earn a total of 0.00 from holding ReTo Eco Solutions or generate 0.0% return on investment in ReTo Eco over 90 days. ReTo Eco is related to or competes with Martin Marietta, Vulcan Materials, Summit Materials, United States, James Hardie, Eagle Materials, and CRH PLC. ReTo Eco-Solutions, Inc., together with its subsidiaries, manufactures and distributes construction materials primarily ... More
ReTo Eco 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 ReTo Eco'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 ReTo Eco Solutions upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.14) | |||
| Maximum Drawdown | 28.21 | |||
| Value At Risk | (9.93) | |||
| Potential Upside | 8.22 |
ReTo Eco Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for ReTo Eco's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as ReTo Eco's standard deviation. In reality, there are many statistical measures that can use ReTo Eco historical prices to predict the future ReTo Eco's volatility.| Risk Adjusted Performance | (0.08) | |||
| Jensen Alpha | (0.86) | |||
| Total Risk Alpha | (1.59) | |||
| Treynor Ratio | (0.78) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ReTo Eco's 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.
ReTo Eco Solutions Backtested Returns
ReTo Eco Solutions maintains Sharpe Ratio (i.e., Efficiency) of -0.12, which implies the firm had a -0.12% return per unit of standard deviation over the last 3 months. ReTo Eco Solutions exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check ReTo Eco's Market Risk Adjusted Performance of (0.77), risk adjusted performance of (0.08), and Coefficient Of Variation of (839.68) to confirm the risk estimate we provide. The company holds a Beta of 0.98, which implies possible diversification benefits within a given portfolio. ReTo Eco returns are very sensitive to returns on the market. As the market goes up or down, ReTo Eco is expected to follow. At this point, ReTo Eco Solutions has a negative expected return of -0.75%. Please make sure to check ReTo Eco's value at risk, daily balance of power, as well as the relationship between the Daily Balance Of Power and price action indicator , to decide if ReTo Eco Solutions performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.41 |
Average predictability
ReTo Eco Solutions has average predictability. Overlapping area represents the amount of predictability between ReTo Eco time series from 24th of August 2024 to 8th of October 2024 and 8th of October 2024 to 22nd 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 ReTo Eco Solutions price movement. The serial correlation of 0.41 indicates that just about 41.0% of current ReTo Eco price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.41 | |
| Spearman Rank Test | 0.25 | |
| Residual Average | 0.0 | |
| Price Variance | 0.01 |
ReTo Eco Solutions lagged returns against current returns
Autocorrelation, which is ReTo Eco 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 ReTo Eco's stock expected returns. We can calculate the autocorrelation of ReTo Eco returns to help us make a trade decision. For example, suppose you find that ReTo Eco 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 |
ReTo Eco 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 ReTo Eco stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if ReTo Eco stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in ReTo Eco stock over time.
Current vs Lagged Prices |
| Timeline |
ReTo Eco Lagged Returns
When evaluating ReTo Eco's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of ReTo Eco stock have on its future price. ReTo Eco 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, ReTo Eco autocorrelation shows the relationship between ReTo Eco stock current value and its past values and can show if there is a momentum factor associated with investing in ReTo Eco Solutions.
Regressed Prices |
| Timeline |
Pair Trading with ReTo Eco
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 ReTo Eco 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 ReTo Eco will appreciate offsetting losses from the drop in the long position's value.Moving against ReTo Stock
| 0.84 | USLM | United States Lime | PairCorr |
| 0.81 | LOMA | Loma Negra Compania Downward Rally | PairCorr |
| 0.8 | CRH | CRH PLC ADR | PairCorr |
| 0.79 | KNF | Knife River | PairCorr |
| 0.77 | MLM | Martin Marietta Materials | PairCorr |
The ability to find closely correlated positions to ReTo Eco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ReTo Eco 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 ReTo Eco - 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 ReTo Eco Solutions to buy it.
The correlation of ReTo Eco 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 ReTo Eco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ReTo Eco Solutions 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 ReTo Eco 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.Check out ReTo Eco Correlation, ReTo Eco Volatility and ReTo Eco Alpha and Beta module to complement your research on ReTo Eco. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
ReTo Eco 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.