TOPMATERIAL (Korea) Market Value
| 360070 Stock | 26,150 1,300 5.23% |
| Symbol | TOPMATERIAL |
TOPMATERIAL '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 TOPMATERIAL'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 TOPMATERIAL.
| 11/11/2024 |
| 12/11/2024 |
If you would invest 0.00 in TOPMATERIAL on November 11, 2024 and sell it all today you would earn a total of 0.00 from holding TOPMATERIAL LTD or generate 0.0% return on investment in TOPMATERIAL over 30 days.
TOPMATERIAL 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 TOPMATERIAL'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 TOPMATERIAL LTD upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.26) | |||
| Maximum Drawdown | 17.13 | |||
| Value At Risk | (4.84) | |||
| Potential Upside | 4.77 |
TOPMATERIAL Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for TOPMATERIAL's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as TOPMATERIAL's standard deviation. In reality, there are many statistical measures that can use TOPMATERIAL historical prices to predict the future TOPMATERIAL's volatility.| Risk Adjusted Performance | (0.15) | |||
| Jensen Alpha | (0.66) | |||
| Total Risk Alpha | (1.18) | |||
| Treynor Ratio | 3.33 |
TOPMATERIAL LTD Backtested Returns
TOPMATERIAL LTD owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.18, which indicates the firm had a -0.18% return per unit of standard deviation over the last 3 months. TOPMATERIAL LTD exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate TOPMATERIAL's variance of 9.52, and Risk Adjusted Performance of (0.15) to confirm the risk estimate we provide. The entity has a beta of -0.21, which indicates not very significant fluctuations relative to the market. As returns on the market increase, returns on owning TOPMATERIAL are expected to decrease at a much lower rate. During the bear market, TOPMATERIAL is likely to outperform the market. At this point, TOPMATERIAL LTD has a negative expected return of -0.55%. Please make sure to validate TOPMATERIAL's standard deviation, total risk alpha, maximum drawdown, as well as the relationship between the jensen alpha and treynor ratio , to decide if TOPMATERIAL LTD performance from the past will be repeated at some future point.
Auto-correlation | 0.16 |
Very weak predictability
TOPMATERIAL LTD has very weak predictability. Overlapping area represents the amount of predictability between TOPMATERIAL 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 TOPMATERIAL LTD price movement. The serial correlation of 0.16 indicates that over 16.0% of current TOPMATERIAL price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.16 | |
| Spearman Rank Test | 0.05 | |
| Residual Average | 0.0 | |
| Price Variance | 3.3 M |
TOPMATERIAL LTD lagged returns against current returns
Autocorrelation, which is TOPMATERIAL 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 TOPMATERIAL's stock expected returns. We can calculate the autocorrelation of TOPMATERIAL returns to help us make a trade decision. For example, suppose you find that TOPMATERIAL 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 |
TOPMATERIAL 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 TOPMATERIAL stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if TOPMATERIAL stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in TOPMATERIAL stock over time.
Current vs Lagged Prices |
| Timeline |
TOPMATERIAL Lagged Returns
When evaluating TOPMATERIAL's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of TOPMATERIAL stock have on its future price. TOPMATERIAL 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, TOPMATERIAL autocorrelation shows the relationship between TOPMATERIAL stock current value and its past values and can show if there is a momentum factor associated with investing in TOPMATERIAL LTD.
Regressed Prices |
| Timeline |
Pair Trading with TOPMATERIAL
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 TOPMATERIAL 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 TOPMATERIAL will appreciate offsetting losses from the drop in the long position's value.Moving together with TOPMATERIAL Stock
The ability to find closely correlated positions to TOPMATERIAL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TOPMATERIAL 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 TOPMATERIAL - 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 TOPMATERIAL LTD to buy it.
The correlation of TOPMATERIAL 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 TOPMATERIAL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TOPMATERIAL LTD 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 TOPMATERIAL 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.