Dongbu Steel (Korea) Market Value
| 016380 Stock | 5,920 380.00 6.86% |
| Symbol | Dongbu |
Dongbu Steel '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 Dongbu Steel'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 Dongbu Steel.
| 11/11/2024 |
| 12/11/2024 |
If you would invest 0.00 in Dongbu Steel on November 11, 2024 and sell it all today you would earn a total of 0.00 from holding Dongbu Steel Co or generate 0.0% return on investment in Dongbu Steel over 30 days. Dongbu Steel is related to or competes with LG Chemicals, POSCO Holdings, Hanwha Solutions, Lotte Chemical, Hyundai Steel, Ecopro Co, and Dongkuk Steel. More
Dongbu Steel 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 Dongbu Steel'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 Dongbu Steel Co upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.74 | |||
| Information Ratio | (0.02) | |||
| Maximum Drawdown | 12.63 | |||
| Value At Risk | (4.62) | |||
| Potential Upside | 4.58 |
Dongbu Steel Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Dongbu Steel's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Dongbu Steel's standard deviation. In reality, there are many statistical measures that can use Dongbu Steel historical prices to predict the future Dongbu Steel's volatility.| Risk Adjusted Performance | 0.0303 | |||
| Jensen Alpha | 0.0472 | |||
| Total Risk Alpha | (0.33) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.3376 |
Dongbu Steel Backtested Returns
Dongbu Steel secures Sharpe Ratio (or Efficiency) of -0.0246, which denotes the company had a -0.0246% return per unit of risk over the last 3 months. Dongbu Steel Co exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Dongbu Steel's Coefficient Of Variation of 3125.34, mean deviation of 1.88, and Downside Deviation of 2.74 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.21, which means not very significant fluctuations relative to the market. As returns on the market increase, Dongbu Steel's returns are expected to increase less than the market. However, during the bear market, the loss of holding Dongbu Steel is expected to be smaller as well. At this point, Dongbu Steel has a negative expected return of -0.0607%. Please make sure to confirm Dongbu Steel's coefficient of variation, jensen alpha, and the relationship between the downside deviation and standard deviation , to decide if Dongbu Steel performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.22 |
Weak reverse predictability
Dongbu Steel Co has weak reverse predictability. Overlapping area represents the amount of predictability between Dongbu Steel time series from 11th of November 2024 to 26th of November 2024 and 26th of November 2024 to 11th 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 Dongbu Steel price movement. The serial correlation of -0.22 indicates that over 22.0% of current Dongbu Steel price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.22 | |
| Spearman Rank Test | -0.25 | |
| Residual Average | 0.0 | |
| Price Variance | 131.2 K |
Dongbu Steel lagged returns against current returns
Autocorrelation, which is Dongbu Steel 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 Dongbu Steel's stock expected returns. We can calculate the autocorrelation of Dongbu Steel returns to help us make a trade decision. For example, suppose you find that Dongbu Steel 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 |
Dongbu Steel 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 Dongbu Steel stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Dongbu Steel stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Dongbu Steel stock over time.
Current vs Lagged Prices |
| Timeline |
Dongbu Steel Lagged Returns
When evaluating Dongbu Steel's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Dongbu Steel stock have on its future price. Dongbu Steel 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, Dongbu Steel autocorrelation shows the relationship between Dongbu Steel stock current value and its past values and can show if there is a momentum factor associated with investing in Dongbu Steel Co.
Regressed Prices |
| Timeline |
Pair Trading with Dongbu Steel
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 Dongbu Steel 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 Dongbu Steel will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Dongbu Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dongbu Steel 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 Dongbu Steel - 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 Dongbu Steel Co to buy it.
The correlation of Dongbu Steel 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 Dongbu Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dongbu Steel 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 Dongbu Steel 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 Dongbu Stock
Dongbu Steel financial ratios help investors to determine whether Dongbu 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 Dongbu with respect to the benefits of owning Dongbu Steel security.