Sardar Chemical (Pakistan) Market Value
| SARC Stock | 32.50 2.19 6.31% |
| Symbol | Sardar |
Sardar Chemical '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 Sardar Chemical'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 Sardar Chemical.
| 12/23/2024 |
| 01/22/2025 |
If you would invest 0.00 in Sardar Chemical on December 23, 2024 and sell it all today you would earn a total of 0.00 from holding Sardar Chemical Industries or generate 0.0% return on investment in Sardar Chemical over 30 days.
Sardar Chemical 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 Sardar Chemical'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 Sardar Chemical Industries upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 5.03 | |||
| Information Ratio | 0.0113 | |||
| Maximum Drawdown | 19.4 | |||
| Value At Risk | (5.77) | |||
| Potential Upside | 6.57 |
Sardar Chemical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Sardar Chemical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Sardar Chemical's standard deviation. In reality, there are many statistical measures that can use Sardar Chemical historical prices to predict the future Sardar Chemical's volatility.| Risk Adjusted Performance | 0.0262 | |||
| Jensen Alpha | 0.0787 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.0076 | |||
| Treynor Ratio | (0.12) |
Sardar Chemical Indu Backtested Returns
Sardar Chemical appears to be not too volatile, given 3 months investment horizon. Sardar Chemical Indu owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0631, which indicates the firm had a 0.0631 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Sardar Chemical Industries, which you can use to evaluate the volatility of the company. Please review Sardar Chemical's Semi Deviation of 2.53, risk adjusted performance of 0.0262, and Coefficient Of Variation of 4520.93 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Sardar Chemical holds a performance score of 4. The entity has a beta of -0.52, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Sardar Chemical are expected to decrease at a much lower rate. During the bear market, Sardar Chemical is likely to outperform the market. Please check Sardar Chemical's maximum drawdown, potential upside, and the relationship between the treynor ratio and value at risk , to make a quick decision on whether Sardar Chemical's existing price patterns will revert.
Auto-correlation | 0.24 |
Weak predictability
Sardar Chemical Industries has weak predictability. Overlapping area represents the amount of predictability between Sardar Chemical time series from 23rd of December 2024 to 7th of January 2025 and 7th of January 2025 to 22nd 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 Sardar Chemical Indu price movement. The serial correlation of 0.24 indicates that over 24.0% of current Sardar Chemical price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.24 | |
| Spearman Rank Test | -0.31 | |
| Residual Average | 0.0 | |
| Price Variance | 0.42 |
Sardar Chemical Indu lagged returns against current returns
Autocorrelation, which is Sardar Chemical 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 Sardar Chemical's stock expected returns. We can calculate the autocorrelation of Sardar Chemical returns to help us make a trade decision. For example, suppose you find that Sardar Chemical 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 |
Sardar Chemical 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 Sardar Chemical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Sardar Chemical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Sardar Chemical stock over time.
Current vs Lagged Prices |
| Timeline |
Sardar Chemical Lagged Returns
When evaluating Sardar Chemical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Sardar Chemical stock have on its future price. Sardar Chemical 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, Sardar Chemical autocorrelation shows the relationship between Sardar Chemical stock current value and its past values and can show if there is a momentum factor associated with investing in Sardar Chemical Industries.
Regressed Prices |
| Timeline |
Pair Trading with Sardar Chemical
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 Sardar Chemical 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 Sardar Chemical will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Sardar Chemical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sardar Chemical 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 Sardar Chemical - 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 Sardar Chemical Industries to buy it.
The correlation of Sardar Chemical 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 Sardar Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sardar Chemical Indu 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 Sardar Chemical 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.