Solvay SA (Belgium) Market Value
| SOLB Stock | EUR 31.25 0.22 0.71% |
| Symbol | Solvay |
Solvay SA '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 Solvay SA'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 Solvay SA.
| 02/29/2024 |
| 11/25/2024 |
If you would invest 0.00 in Solvay SA on February 29, 2024 and sell it all today you would earn a total of 0.00 from holding Solvay SA or generate 0.0% return on investment in Solvay SA over 270 days. Solvay SA is related to or competes with Retail Estates, Vastned Retail, and Home Invest. Solvay SA operates as an advanced materials and specialty chemicals worldwide More
Solvay SA 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 Solvay SA'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 Solvay SA upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.34 | |||
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 12.12 | |||
| Value At Risk | (3.37) | |||
| Potential Upside | 2.61 |
Solvay SA Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Solvay SA's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Solvay SA's standard deviation. In reality, there are many statistical measures that can use Solvay SA historical prices to predict the future Solvay SA's volatility.| Risk Adjusted Performance | 0.0133 | |||
| Jensen Alpha | 0.0263 | |||
| Total Risk Alpha | (0.30) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | (0.06) |
Solvay SA Backtested Returns
Currently, Solvay SA is very steady. Solvay SA owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0127, which indicates the firm had a 0.0127% return per unit of risk over the last 3 months. We have found thirty technical indicators for Solvay SA, which you can use to evaluate the volatility of the company. Please validate Solvay SA's Risk Adjusted Performance of 0.0133, semi deviation of 2.26, and Coefficient Of Variation of 10669.61 to confirm if the risk estimate we provide is consistent with the expected return of 0.0251%. Solvay SA has a performance score of 1 on a scale of 0 to 100. The entity has a beta of -0.15, which indicates not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Solvay SA are expected to decrease at a much lower rate. During the bear market, Solvay SA is likely to outperform the market. Solvay SA right now has a risk of 1.99%. Please validate Solvay SA jensen alpha, sortino ratio, maximum drawdown, as well as the relationship between the total risk alpha and treynor ratio , to decide if Solvay SA will be following its existing price patterns.
Auto-correlation | 0.41 |
Average predictability
Solvay SA has average predictability. Overlapping area represents the amount of predictability between Solvay SA time series from 29th of February 2024 to 13th of July 2024 and 13th of July 2024 to 25th 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 Solvay SA price movement. The serial correlation of 0.41 indicates that just about 41.0% of current Solvay SA price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.41 | |
| Spearman Rank Test | 0.22 | |
| Residual Average | 0.0 | |
| Price Variance | 7.77 |
Solvay SA lagged returns against current returns
Autocorrelation, which is Solvay SA 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 Solvay SA's stock expected returns. We can calculate the autocorrelation of Solvay SA returns to help us make a trade decision. For example, suppose you find that Solvay SA 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 |
Solvay SA 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 Solvay SA stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Solvay SA stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Solvay SA stock over time.
Current vs Lagged Prices |
| Timeline |
Solvay SA Lagged Returns
When evaluating Solvay SA's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Solvay SA stock have on its future price. Solvay SA 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, Solvay SA autocorrelation shows the relationship between Solvay SA stock current value and its past values and can show if there is a momentum factor associated with investing in Solvay SA.
Regressed Prices |
| Timeline |
Pair Trading with Solvay SA
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 Solvay SA 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 Solvay SA will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Solvay SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Solvay SA 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 Solvay SA - 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 Solvay SA to buy it.
The correlation of Solvay SA 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 Solvay SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Solvay SA 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 Solvay SA 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.Additional Tools for Solvay Stock Analysis
When running Solvay SA's price analysis, check to measure Solvay SA'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 Solvay SA is operating at the current time. Most of Solvay SA's value examination focuses on studying past and present price action to predict the probability of Solvay SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Solvay SA's price. Additionally, you may evaluate how the addition of Solvay SA to your portfolios can decrease your overall portfolio volatility.