Lotte Chemical (Korea) Market Value
| 011170 Stock | 64,500 4,900 7.06% |
| Symbol | Lotte |
Lotte 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 Lotte 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 Lotte Chemical.
| 09/02/2024 |
| 12/01/2024 |
If you would invest 0.00 in Lotte Chemical on September 2, 2024 and sell it all today you would earn a total of 0.00 from holding Lotte Chemical Corp or generate 0.0% return on investment in Lotte Chemical over 90 days. Lotte Chemical is related to or competes with LG Chemicals, POSCO Holdings, Hanwha Solutions, Hyundai Steel, Ecopro, Seah Steel, and SeAH Bestee. More
Lotte 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 Lotte 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 Lotte Chemical Corp upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 21.38 | |||
| Value At Risk | (8.14) | |||
| Potential Upside | 5.83 |
Lotte Chemical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lotte Chemical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lotte Chemical's standard deviation. In reality, there are many statistical measures that can use Lotte Chemical historical prices to predict the future Lotte Chemical's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.30) | |||
| Total Risk Alpha | (0.99) | |||
| Treynor Ratio | 1.81 |
Lotte Chemical Corp Backtested Returns
Lotte Chemical Corp has Sharpe Ratio of -0.0781, which conveys that the firm had a -0.0781% return per unit of risk over the last 3 months. Lotte Chemical exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lotte Chemical's Mean Deviation of 2.81, risk adjusted performance of (0.05), and Standard Deviation of 3.98 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of -0.18, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Lotte Chemical are expected to decrease at a much lower rate. During the bear market, Lotte Chemical is likely to outperform the market. At this point, Lotte Chemical Corp has a negative expected return of -0.32%. Please make sure to verify Lotte Chemical's maximum drawdown, potential upside, and the relationship between the treynor ratio and value at risk , to decide if Lotte Chemical Corp performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.65 |
Very good reverse predictability
Lotte Chemical Corp has very good reverse predictability. Overlapping area represents the amount of predictability between Lotte Chemical time series from 2nd of September 2024 to 17th of October 2024 and 17th of October 2024 to 1st of December 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 Lotte Chemical Corp price movement. The serial correlation of -0.65 indicates that roughly 65.0% of current Lotte Chemical price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.65 | |
| Spearman Rank Test | -0.54 | |
| Residual Average | 0.0 | |
| Price Variance | 129.2 M |
Lotte Chemical Corp lagged returns against current returns
Autocorrelation, which is Lotte 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 Lotte Chemical's stock expected returns. We can calculate the autocorrelation of Lotte Chemical returns to help us make a trade decision. For example, suppose you find that Lotte 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 |
Lotte 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 Lotte Chemical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lotte Chemical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lotte Chemical stock over time.
Current vs Lagged Prices |
| Timeline |
Lotte Chemical Lagged Returns
When evaluating Lotte Chemical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lotte Chemical stock have on its future price. Lotte 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, Lotte Chemical autocorrelation shows the relationship between Lotte Chemical stock current value and its past values and can show if there is a momentum factor associated with investing in Lotte Chemical Corp.
Regressed Prices |
| Timeline |
Pair Trading with Lotte 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 Lotte 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 Lotte Chemical will appreciate offsetting losses from the drop in the long position's value.Moving together with Lotte Stock
Moving against Lotte Stock
The ability to find closely correlated positions to Lotte 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 Lotte 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 Lotte 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 Lotte Chemical Corp to buy it.
The correlation of Lotte 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 Lotte Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lotte Chemical Corp 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 Lotte 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.Other Information on Investing in Lotte Stock
Lotte Chemical financial ratios help investors to determine whether Lotte 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 Lotte with respect to the benefits of owning Lotte Chemical security.