Tata Textile (Pakistan) Market Value
| TATM Stock | 49.17 4.47 10.00% |
| Symbol | Tata |
Please note, there is a significant difference between Tata Textile's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tata Textile is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tata Textile'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.
Tata Textile '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 Tata Textile'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 Tata Textile.
| 06/04/2023 |
| 11/25/2024 |
If you would invest 0.00 in Tata Textile on June 4, 2023 and sell it all today you would earn a total of 0.00 from holding Tata Textile Mills or generate 0.0% return on investment in Tata Textile over 540 days. Tata Textile is related to or competes with Jubilee Life, TPL Insurance, Reliance Insurance, Century Insurance, Synthetic Products, Adamjee Insurance, and Shaheen Insurance. More
Tata Textile 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 Tata Textile'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 Tata Textile Mills upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 16.47 | |||
| Value At Risk | (5.72) | |||
| Potential Upside | 6.59 |
Tata Textile Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Tata Textile's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Tata Textile's standard deviation. In reality, there are many statistical measures that can use Tata Textile historical prices to predict the future Tata Textile's volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.79) | |||
| Treynor Ratio | (13.53) |
Tata Textile Mills Backtested Returns
Tata Textile Mills owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0347, which indicates the firm had a -0.0347% return per unit of risk over the last 3 months. Tata Textile Mills exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Tata Textile's Variance of 13.77, risk adjusted performance of (0.03), and Coefficient Of Variation of (1,910) to confirm the risk estimate we provide. The entity has a beta of 0.0151, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Tata Textile's returns are expected to increase less than the market. However, during the bear market, the loss of holding Tata Textile is expected to be smaller as well. At this point, Tata Textile Mills has a negative expected return of -0.14%. Please make sure to validate Tata Textile's kurtosis, daily balance of power, and the relationship between the skewness and accumulation distribution , to decide if Tata Textile Mills performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.73 |
Almost perfect reverse predictability
Tata Textile Mills has almost perfect reverse predictability. Overlapping area represents the amount of predictability between Tata Textile time series from 4th of June 2023 to 29th of February 2024 and 29th of February 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 Tata Textile Mills price movement. The serial correlation of -0.73 indicates that around 73.0% of current Tata Textile price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.73 | |
| Spearman Rank Test | -0.73 | |
| Residual Average | 0.0 | |
| Price Variance | 35.55 |
Tata Textile Mills lagged returns against current returns
Autocorrelation, which is Tata Textile 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 Tata Textile's stock expected returns. We can calculate the autocorrelation of Tata Textile returns to help us make a trade decision. For example, suppose you find that Tata Textile 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 |
Tata Textile 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 Tata Textile stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Tata Textile stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Tata Textile stock over time.
Current vs Lagged Prices |
| Timeline |
Tata Textile Lagged Returns
When evaluating Tata Textile's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Tata Textile stock have on its future price. Tata Textile 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, Tata Textile autocorrelation shows the relationship between Tata Textile stock current value and its past values and can show if there is a momentum factor associated with investing in Tata Textile Mills.
Regressed Prices |
| Timeline |
Pair Trading with Tata Textile
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 Tata Textile 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 Tata Textile will appreciate offsetting losses from the drop in the long position's value.Moving together with Tata Stock
Moving against Tata Stock
| 0.84 | THCCL | Thatta Cement | PairCorr |
| 0.74 | FFL | Fauji Foods | PairCorr |
| 0.64 | MARI | Mari Petroleum Split | PairCorr |
| 0.62 | REWM | Reliance Weaving Mills | PairCorr |
| 0.47 | KAPCO | KOT Addu Power | PairCorr |
The ability to find closely correlated positions to Tata Textile could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tata Textile 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 Tata Textile - 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 Tata Textile Mills to buy it.
The correlation of Tata Textile 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 Tata Textile moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tata Textile 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 Tata Textile 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 Tata Stock
Tata Textile financial ratios help investors to determine whether Tata 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 Tata with respect to the benefits of owning Tata Textile security.