Daedong Steel (Korea) Market Value
| 048470 Stock | 3,590 30.00 0.83% |
| Symbol | Daedong |
Daedong 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 Daedong 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 Daedong Steel.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Daedong Steel on October 30, 2024 and sell it all today you would earn a total of 0.00 from holding Daedong Steel Co or generate 0.0% return on investment in Daedong Steel over 30 days. Daedong Steel is related to or competes with Keum Kang, Tplex, PJ Metal, Samhyun Steel, Gyeongnam Steel, Jeil Steel, and Daedong Steel. Daedong Steel Co., Ltd. manufactures and sells various steel products. More
Daedong 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 Daedong 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 Daedong Steel Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 8.49 | |||
| Value At Risk | (3.66) | |||
| Potential Upside | 3.19 |
Daedong Steel Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Daedong Steel's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Daedong Steel's standard deviation. In reality, there are many statistical measures that can use Daedong Steel historical prices to predict the future Daedong Steel's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.52) | |||
| Treynor Ratio | (0.91) |
Daedong Steel Backtested Returns
Daedong Steel secures Sharpe Ratio (or Efficiency) of -0.0823, which denotes the company had a -0.0823% return per unit of standard deviation over the last 3 months. Daedong Steel Co exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Daedong Steel's Coefficient Of Variation of (958.04), mean deviation of 1.53, and Standard Deviation of 1.99 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.24, which means not very significant fluctuations relative to the market. As returns on the market increase, Daedong Steel's returns are expected to increase less than the market. However, during the bear market, the loss of holding Daedong Steel is expected to be smaller as well. At this point, Daedong Steel has a negative expected return of -0.17%. Please make sure to confirm Daedong Steel's mean deviation, standard deviation, total risk alpha, as well as the relationship between the coefficient of variation and jensen alpha , to decide if Daedong Steel performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.71 |
Almost perfect reverse predictability
Daedong Steel Co has almost perfect reverse predictability. Overlapping area represents the amount of predictability between Daedong Steel time series from 30th of October 2024 to 14th of November 2024 and 14th of November 2024 to 29th 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 Daedong Steel price movement. The serial correlation of -0.71 indicates that around 71.0% of current Daedong Steel price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.71 | |
| Spearman Rank Test | 0.56 | |
| Residual Average | 0.0 | |
| Price Variance | 8524.38 |
Daedong Steel lagged returns against current returns
Autocorrelation, which is Daedong 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 Daedong Steel's stock expected returns. We can calculate the autocorrelation of Daedong Steel returns to help us make a trade decision. For example, suppose you find that Daedong 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 |
Daedong 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 Daedong Steel stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Daedong Steel stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Daedong Steel stock over time.
Current vs Lagged Prices |
| Timeline |
Daedong Steel Lagged Returns
When evaluating Daedong Steel's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Daedong Steel stock have on its future price. Daedong 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, Daedong Steel autocorrelation shows the relationship between Daedong Steel stock current value and its past values and can show if there is a momentum factor associated with investing in Daedong Steel Co.
Regressed Prices |
| Timeline |
Pair Trading with Daedong 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 Daedong 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 Daedong Steel will appreciate offsetting losses from the drop in the long position's value.Moving together with Daedong Stock
Moving against Daedong Stock
The ability to find closely correlated positions to Daedong 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 Daedong 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 Daedong 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 Daedong Steel Co to buy it.
The correlation of Daedong 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 Daedong Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Daedong 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 Daedong 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 Daedong Stock
Daedong Steel financial ratios help investors to determine whether Daedong 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 Daedong with respect to the benefits of owning Daedong Steel security.