Korean Drug (Korea) Market Value
| 014570 Stock | KRW 4,560 50.00 1.08% |
| Symbol | Korean |
Korean Drug '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 Korean Drug'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 Korean Drug.
| 05/06/2024 |
| 12/02/2024 |
If you would invest 0.00 in Korean Drug on May 6, 2024 and sell it all today you would earn a total of 0.00 from holding Korean Drug Co or generate 0.0% return on investment in Korean Drug over 210 days. Korean Drug is related to or competes with Kolon Life, JETEMA, Aminologics CoLtd, Daihan Pharmaceutical, HLB Pharmaceutical, Withuspharmaceutical, and Choong Ang. Korean Drug Co., Ltd. researches, develops, manufactures, and markets medicines for treating human illness in South Kore... More
Korean Drug 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 Korean Drug'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 Korean Drug Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.28) | |||
| Maximum Drawdown | 6.39 | |||
| Value At Risk | (2.75) | |||
| Potential Upside | 1.78 |
Korean Drug Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Korean Drug's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Korean Drug's standard deviation. In reality, there are many statistical measures that can use Korean Drug historical prices to predict the future Korean Drug's volatility.| Risk Adjusted Performance | (0.13) | |||
| Jensen Alpha | (0.25) | |||
| Total Risk Alpha | (0.47) | |||
| Treynor Ratio | (6.75) |
Korean Drug Backtested Returns
Korean Drug has Sharpe Ratio of -0.18, which conveys that the firm had a -0.18% return per unit of risk over the last 3 months. Korean Drug exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Korean Drug's Standard Deviation of 1.35, risk adjusted performance of (0.13), and Mean Deviation of 0.966 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.0364, which conveys not very significant fluctuations relative to the market. As returns on the market increase, Korean Drug's returns are expected to increase less than the market. However, during the bear market, the loss of holding Korean Drug is expected to be smaller as well. At this point, Korean Drug has a negative expected return of -0.24%. Please make sure to verify Korean Drug's treynor ratio, value at risk, and the relationship between the total risk alpha and maximum drawdown , to decide if Korean Drug performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.74 |
Good predictability
Korean Drug Co has good predictability. Overlapping area represents the amount of predictability between Korean Drug time series from 6th of May 2024 to 19th of August 2024 and 19th of August 2024 to 2nd 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 Korean Drug price movement. The serial correlation of 0.74 indicates that around 74.0% of current Korean Drug price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.74 | |
| Spearman Rank Test | 0.7 | |
| Residual Average | 0.0 | |
| Price Variance | 75.3 K |
Korean Drug lagged returns against current returns
Autocorrelation, which is Korean Drug 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 Korean Drug's stock expected returns. We can calculate the autocorrelation of Korean Drug returns to help us make a trade decision. For example, suppose you find that Korean Drug 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 |
Korean Drug 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 Korean Drug stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Korean Drug stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Korean Drug stock over time.
Current vs Lagged Prices |
| Timeline |
Korean Drug Lagged Returns
When evaluating Korean Drug's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Korean Drug stock have on its future price. Korean Drug 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, Korean Drug autocorrelation shows the relationship between Korean Drug stock current value and its past values and can show if there is a momentum factor associated with investing in Korean Drug Co.
Regressed Prices |
| Timeline |
Pair Trading with Korean Drug
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 Korean Drug 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 Korean Drug will appreciate offsetting losses from the drop in the long position's value.Moving together with Korean Stock
Moving against Korean Stock
The ability to find closely correlated positions to Korean Drug could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Korean Drug 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 Korean Drug - 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 Korean Drug Co to buy it.
The correlation of Korean Drug 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 Korean Drug moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Korean Drug 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 Korean Drug 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 Korean Stock
Korean Drug financial ratios help investors to determine whether Korean 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 Korean with respect to the benefits of owning Korean Drug security.