Reliance Weaving (Pakistan) Market Value
| REWM Stock | 96.57 8.78 10.00% |
| Symbol | Reliance |
Reliance Weaving '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 Reliance Weaving'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 Reliance Weaving.
| 09/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in Reliance Weaving on September 27, 2024 and sell it all today you would earn a total of 0.00 from holding Reliance Weaving Mills or generate 0.0% return on investment in Reliance Weaving over 60 days. Reliance Weaving is related to or competes with MCB Bank, Allied Bank, EFU General, National Bank, and Shaheen Insurance. More
Reliance Weaving 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 Reliance Weaving'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 Reliance Weaving Mills upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.06 | |||
| Information Ratio | 0.0369 | |||
| Maximum Drawdown | 19.35 | |||
| Value At Risk | (6.49) | |||
| Potential Upside | 9.96 |
Reliance Weaving Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Reliance Weaving's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Reliance Weaving's standard deviation. In reality, there are many statistical measures that can use Reliance Weaving historical prices to predict the future Reliance Weaving's volatility.| Risk Adjusted Performance | 0.0606 | |||
| Jensen Alpha | 0.2665 | |||
| Total Risk Alpha | (0.36) | |||
| Sortino Ratio | 0.0368 | |||
| Treynor Ratio | 19.15 |
Reliance Weaving Mills Backtested Returns
Reliance Weaving appears to be very steady, given 3 months investment horizon. Reliance Weaving Mills maintains Sharpe Ratio (i.e., Efficiency) of 0.13, which implies the firm had a 0.13% return per unit of risk over the last 3 months. By analyzing Reliance Weaving's technical indicators, you can evaluate if the expected return of 0.64% is justified by implied risk. Please evaluate Reliance Weaving's Semi Deviation of 2.54, risk adjusted performance of 0.0606, and Coefficient Of Variation of 1455.37 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Reliance Weaving holds a performance score of 10. The company holds a Beta of 0.014, which implies not very significant fluctuations relative to the market. As returns on the market increase, Reliance Weaving's returns are expected to increase less than the market. However, during the bear market, the loss of holding Reliance Weaving is expected to be smaller as well. Please check Reliance Weaving's sortino ratio, maximum drawdown, and the relationship between the total risk alpha and treynor ratio , to make a quick decision on whether Reliance Weaving's historical price patterns will revert.
Auto-correlation | -0.37 |
Poor reverse predictability
Reliance Weaving Mills has poor reverse predictability. Overlapping area represents the amount of predictability between Reliance Weaving time series from 27th of September 2024 to 27th of October 2024 and 27th of October 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 Reliance Weaving Mills price movement. The serial correlation of -0.37 indicates that just about 37.0% of current Reliance Weaving price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.37 | |
| Spearman Rank Test | -0.07 | |
| Residual Average | 0.0 | |
| Price Variance | 12.69 |
Reliance Weaving Mills lagged returns against current returns
Autocorrelation, which is Reliance Weaving 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 Reliance Weaving's stock expected returns. We can calculate the autocorrelation of Reliance Weaving returns to help us make a trade decision. For example, suppose you find that Reliance Weaving 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 |
Reliance Weaving 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 Reliance Weaving stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Reliance Weaving stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Reliance Weaving stock over time.
Current vs Lagged Prices |
| Timeline |
Reliance Weaving Lagged Returns
When evaluating Reliance Weaving's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Reliance Weaving stock have on its future price. Reliance Weaving 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, Reliance Weaving autocorrelation shows the relationship between Reliance Weaving stock current value and its past values and can show if there is a momentum factor associated with investing in Reliance Weaving Mills.
Regressed Prices |
| Timeline |
Pair Trading with Reliance Weaving
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 Reliance Weaving 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 Reliance Weaving will appreciate offsetting losses from the drop in the long position's value.Moving together with Reliance Stock
Moving against Reliance Stock
The ability to find closely correlated positions to Reliance Weaving could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reliance Weaving 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 Reliance Weaving - 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 Reliance Weaving Mills to buy it.
The correlation of Reliance Weaving 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 Reliance Weaving moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reliance Weaving 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 Reliance Weaving 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 Reliance Stock
Reliance Weaving financial ratios help investors to determine whether Reliance 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 Reliance with respect to the benefits of owning Reliance Weaving security.