Formosa Plastics (Taiwan) Market Value
| 1301 Stock | TWD 41.35 1.35 3.16% |
| Symbol | Formosa |
Formosa Plastics '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 Formosa Plastics' 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 Formosa Plastics.
| 06/08/2023 |
| 11/29/2024 |
If you would invest 0.00 in Formosa Plastics on June 8, 2023 and sell it all today you would earn a total of 0.00 from holding Formosa Plastics Corp or generate 0.0% return on investment in Formosa Plastics over 540 days. Formosa Plastics is related to or competes with Basso Industry, Chung Hsin, TYC Brother, TECO Electric, and China General. Formosa Plastics Corporation produces and sells intermediate raw materials for plastics in Taiwan, Mainland China, and i... More
Formosa Plastics 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 Formosa Plastics' 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 Formosa Plastics Corp upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.18) | |||
| Maximum Drawdown | 10.13 | |||
| Value At Risk | (3.23) | |||
| Potential Upside | 4.33 |
Formosa Plastics Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Formosa Plastics' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Formosa Plastics' standard deviation. In reality, there are many statistical measures that can use Formosa Plastics historical prices to predict the future Formosa Plastics' volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.61) | |||
| Treynor Ratio | (1.00) |
Formosa Plastics Corp Backtested Returns
Formosa Plastics Corp secures Sharpe Ratio (or Efficiency) of -0.13, which denotes the company had a -0.13% return per unit of risk over the last 3 months. Formosa Plastics Corp exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Formosa Plastics' Mean Deviation of 1.48, standard deviation of 2.16, and Variance of 4.65 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.28, which means not very significant fluctuations relative to the market. As returns on the market increase, Formosa Plastics' returns are expected to increase less than the market. However, during the bear market, the loss of holding Formosa Plastics is expected to be smaller as well. At this point, Formosa Plastics Corp has a negative expected return of -0.29%. Please make sure to confirm Formosa Plastics' information ratio, total risk alpha, maximum drawdown, as well as the relationship between the jensen alpha and treynor ratio , to decide if Formosa Plastics Corp performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.73 |
Good predictability
Formosa Plastics Corp has good predictability. Overlapping area represents the amount of predictability between Formosa Plastics time series from 8th of June 2023 to 4th of March 2024 and 4th of March 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 Formosa Plastics Corp price movement. The serial correlation of 0.73 indicates that around 73.0% of current Formosa Plastics price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.73 | |
| Spearman Rank Test | 0.79 | |
| Residual Average | 0.0 | |
| Price Variance | 73.9 |
Formosa Plastics Corp lagged returns against current returns
Autocorrelation, which is Formosa Plastics 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 Formosa Plastics' stock expected returns. We can calculate the autocorrelation of Formosa Plastics returns to help us make a trade decision. For example, suppose you find that Formosa Plastics 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 |
Formosa Plastics 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 Formosa Plastics stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Formosa Plastics stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Formosa Plastics stock over time.
Current vs Lagged Prices |
| Timeline |
Formosa Plastics Lagged Returns
When evaluating Formosa Plastics' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Formosa Plastics stock have on its future price. Formosa Plastics 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, Formosa Plastics autocorrelation shows the relationship between Formosa Plastics stock current value and its past values and can show if there is a momentum factor associated with investing in Formosa Plastics Corp.
Regressed Prices |
| Timeline |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Formosa Stock Analysis
When running Formosa Plastics' price analysis, check to measure Formosa Plastics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formosa Plastics is operating at the current time. Most of Formosa Plastics' value examination focuses on studying past and present price action to predict the probability of Formosa Plastics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formosa Plastics' price. Additionally, you may evaluate how the addition of Formosa Plastics to your portfolios can decrease your overall portfolio volatility.