Templeton Dragon Closed Fund Market Value

Symbol

Templeton

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 Templeton Dragon's fund 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 Templeton Dragon.

Templeton Dragon Upside/Downside Indicators

Templeton Dragon Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Templeton Dragon's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Templeton Dragon's standard deviation. In reality, there are many statistical measures that can use Templeton Dragon historical prices to predict the future Templeton Dragon's volatility.

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Templeton Dragon'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.

Autocorrelation, which is Templeton Dragon fund'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 Templeton Dragon's fund expected returns. We can calculate the autocorrelation of Templeton Dragon returns to help us make a trade decision. For example, suppose you find that Templeton Dragon has exhibited high autocorrelation historically, and you observe that the fund is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Templeton Dragon fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Templeton Dragon fund is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Templeton Dragon fund over time.

When evaluating Templeton Dragon's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Templeton Dragon fund have on its future price. Templeton Dragon 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, Templeton Dragon autocorrelation shows the relationship between Templeton Dragon fund current value and its past values and can show if there is a momentum factor associated with investing in Templeton Dragon Closed.

Templeton Dragon financial ratios help investors to determine whether Templeton Fund 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 Templeton with respect to the benefits of owning Templeton Dragon security.