TORM Plc (Denmark) Market Value
| TRMD-A Stock | DKK 151.30 1.80 1.18% |
| Symbol | TORM |
TORM Plc '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 TORM Plc'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 TORM Plc.
| 10/28/2024 |
| 11/27/2024 |
If you would invest 0.00 in TORM Plc on October 28, 2024 and sell it all today you would earn a total of 0.00 from holding TORM plc or generate 0.0% return on investment in TORM Plc over 30 days. TORM Plc is related to or competes with Danske Bank, DSV Panalpina, AP Mller, Vestas Wind, and Bavarian Nordic. TORM plc, a product tanker company, transports refined oil products worldwide More
TORM Plc 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 TORM Plc'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 TORM plc upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.40) | |||
| Maximum Drawdown | 9.36 | |||
| Value At Risk | (4.16) | |||
| Potential Upside | 2.57 |
TORM Plc Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for TORM Plc's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as TORM Plc's standard deviation. In reality, there are many statistical measures that can use TORM Plc historical prices to predict the future TORM Plc's volatility.| Risk Adjusted Performance | (0.25) | |||
| Jensen Alpha | (0.75) | |||
| Total Risk Alpha | (1.02) | |||
| Treynor Ratio | (1.98) |
TORM plc Backtested Returns
TORM plc owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.36, which indicates the firm had a -0.36% return per unit of standard deviation over the last 3 months. TORM plc exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate TORM Plc's variance of 4.15, and Risk Adjusted Performance of (0.25) to confirm the risk estimate we provide. The entity has a beta of 0.36, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, TORM Plc's returns are expected to increase less than the market. However, during the bear market, the loss of holding TORM Plc is expected to be smaller as well. At this point, TORM plc has a negative expected return of -0.71%. Please make sure to validate TORM Plc's maximum drawdown, skewness, accumulation distribution, as well as the relationship between the potential upside and kurtosis , to decide if TORM plc performance from the past will be repeated at some future point.
Auto-correlation | 0.74 |
Good predictability
TORM plc has good predictability. Overlapping area represents the amount of predictability between TORM Plc time series from 28th of October 2024 to 12th of November 2024 and 12th of November 2024 to 27th 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 TORM plc price movement. The serial correlation of 0.74 indicates that around 74.0% of current TORM Plc price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.74 | |
| Spearman Rank Test | 0.82 | |
| Residual Average | 0.0 | |
| Price Variance | 35.39 |
TORM plc lagged returns against current returns
Autocorrelation, which is TORM Plc 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 TORM Plc's stock expected returns. We can calculate the autocorrelation of TORM Plc returns to help us make a trade decision. For example, suppose you find that TORM Plc 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 |
TORM Plc 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 TORM Plc stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if TORM Plc stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in TORM Plc stock over time.
Current vs Lagged Prices |
| Timeline |
TORM Plc Lagged Returns
When evaluating TORM Plc's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of TORM Plc stock have on its future price. TORM Plc 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, TORM Plc autocorrelation shows the relationship between TORM Plc stock current value and its past values and can show if there is a momentum factor associated with investing in TORM plc.
Regressed Prices |
| Timeline |
Pair Trading with TORM Plc
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 TORM Plc 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 TORM Plc will appreciate offsetting losses from the drop in the long position's value.Moving against TORM Stock
| 0.82 | RILBA | Ringkjoebing Landbobank | PairCorr |
| 0.67 | MAERSK-B | AP Mller | PairCorr |
| 0.67 | SPNO | Spar Nord Bank | PairCorr |
| 0.66 | TRYG | Tryg AS | PairCorr |
| 0.65 | MAERSK-A | AP Mller | PairCorr |
The ability to find closely correlated positions to TORM Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TORM Plc 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 TORM Plc - 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 TORM plc to buy it.
The correlation of TORM Plc 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 TORM Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TORM plc 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 TORM Plc 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 TORM Stock
TORM Plc financial ratios help investors to determine whether TORM 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 TORM with respect to the benefits of owning TORM Plc security.