SKC (Korea) Market Value
| 011790 Stock | 103,100 4,800 4.88% |
| Symbol | SKC |
SKC '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 SKC'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 SKC.
| 11/04/2024 |
| 12/04/2024 |
If you would invest 0.00 in SKC on November 4, 2024 and sell it all today you would earn a total of 0.00 from holding SKC Co or generate 0.0% return on investment in SKC over 30 days. SKC is related to or competes with LG Chemicals, POSCO Holdings, Lotte Chemical, Hyundai Steel, Dongkuk Steel, Korea Petro, and Seah Steel. More
SKC 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 SKC'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 SKC Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 19.73 | |||
| Value At Risk | (6.67) | |||
| Potential Upside | 8.28 |
SKC Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for SKC's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as SKC's standard deviation. In reality, there are many statistical measures that can use SKC historical prices to predict the future SKC's volatility.| Risk Adjusted Performance | (0.04) | |||
| Jensen Alpha | (0.19) | |||
| Total Risk Alpha | (0.79) | |||
| Treynor Ratio | 0.4423 |
SKC Co Backtested Returns
SKC Co retains Efficiency (Sharpe Ratio) of -0.0311, which indicates the firm had a -0.0311% return per unit of volatility over the last 3 months. SKC exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate SKC's risk adjusted performance of (0.04), and Standard Deviation of 4.04 to confirm the risk estimate we provide. The entity owns a Beta (Systematic Risk) of -0.56, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning SKC are expected to decrease at a much lower rate. During the bear market, SKC is likely to outperform the market. At this point, SKC Co has a negative expected return of -0.13%. Please make sure to validate SKC's standard deviation, total risk alpha, and the relationship between the coefficient of variation and jensen alpha , to decide if SKC Co performance from the past will be repeated at future time.
Auto-correlation | 0.58 |
Modest predictability
SKC Co has modest predictability. Overlapping area represents the amount of predictability between SKC time series from 4th of November 2024 to 19th of November 2024 and 19th of November 2024 to 4th 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 SKC Co price movement. The serial correlation of 0.58 indicates that roughly 58.0% of current SKC price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.58 | |
| Spearman Rank Test | 0.78 | |
| Residual Average | 0.0 | |
| Price Variance | 19.2 M |
SKC Co lagged returns against current returns
Autocorrelation, which is SKC 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 SKC's stock expected returns. We can calculate the autocorrelation of SKC returns to help us make a trade decision. For example, suppose you find that SKC 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 |
SKC 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 SKC stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if SKC stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in SKC stock over time.
Current vs Lagged Prices |
| Timeline |
SKC Lagged Returns
When evaluating SKC's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of SKC stock have on its future price. SKC 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, SKC autocorrelation shows the relationship between SKC stock current value and its past values and can show if there is a momentum factor associated with investing in SKC Co.
Regressed Prices |
| Timeline |
Pair Trading with SKC
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 SKC 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 SKC will appreciate offsetting losses from the drop in the long position's value.Moving together with SKC Stock
| 0.83 | 051910 | LG Chemicals | PairCorr |
| 0.76 | 005490 | POSCO Holdings | PairCorr |
| 0.9 | 011170 | Lotte Chemical Corp | PairCorr |
| 0.9 | 004020 | Hyundai Steel | PairCorr |
Moving against SKC Stock
The ability to find closely correlated positions to SKC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SKC 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 SKC - 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 SKC Co to buy it.
The correlation of SKC 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 SKC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SKC Co 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 SKC 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 SKC Stock
SKC financial ratios help investors to determine whether SKC 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 SKC with respect to the benefits of owning SKC security.