RWE AG (Germany) Market Value
| RWE Stock | 30.96 0.05 0.16% |
| Symbol | RWE |
RWE AG '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 RWE AG'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 RWE AG.
| 08/28/2024 |
| 11/26/2024 |
RWE AG 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 RWE AG'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 RWE AG upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 7.71 | |||
| Value At Risk | (1.96) | |||
| Potential Upside | 2.77 |
RWE AG Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for RWE AG's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as RWE AG's standard deviation. In reality, there are many statistical measures that can use RWE AG historical prices to predict the future RWE AG's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.29) | |||
| Treynor Ratio | 0.1914 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of RWE AG'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.
RWE AG Backtested Returns
RWE AG maintains Sharpe Ratio (i.e., Efficiency) of -0.0289, which implies the firm had a -0.0289% return per unit of volatility over the last 3 months. RWE AG exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check RWE AG's coefficient of variation of (3,600), and Risk Adjusted Performance of (0.02) to confirm the risk estimate we provide. The company holds a Beta of -0.28, which implies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning RWE AG are expected to decrease at a much lower rate. During the bear market, RWE AG is likely to outperform the market. At this point, RWE AG has a negative expected return of -0.0448%. Please make sure to check RWE AG's skewness, and the relationship between the treynor ratio and rate of daily change , to decide if RWE AG performance from the past will be repeated at future time.
Auto-correlation | 0.18 |
Very weak predictability
RWE AG has very weak predictability. Overlapping area represents the amount of predictability between RWE AG time series from 28th of August 2024 to 12th of October 2024 and 12th 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 RWE AG price movement. The serial correlation of 0.18 indicates that over 18.0% of current RWE AG price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.18 | |
| Spearman Rank Test | -0.05 | |
| Residual Average | 0.0 | |
| Price Variance | 0.55 |
RWE AG lagged returns against current returns
Autocorrelation, which is RWE AG 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 RWE AG's stock expected returns. We can calculate the autocorrelation of RWE AG returns to help us make a trade decision. For example, suppose you find that RWE AG 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 |
RWE AG 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 RWE AG stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if RWE AG stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in RWE AG stock over time.
Current vs Lagged Prices |
| Timeline |
RWE AG Lagged Returns
When evaluating RWE AG's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of RWE AG stock have on its future price. RWE AG 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, RWE AG autocorrelation shows the relationship between RWE AG stock current value and its past values and can show if there is a momentum factor associated with investing in RWE AG.
Regressed Prices |
| Timeline |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for RWE Stock Analysis
When running RWE AG's price analysis, check to measure RWE AG's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy RWE AG is operating at the current time. Most of RWE AG's value examination focuses on studying past and present price action to predict the probability of RWE AG's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move RWE AG's price. Additionally, you may evaluate how the addition of RWE AG to your portfolios can decrease your overall portfolio volatility.