Soft World (Taiwan) Market Value
| 5478 Stock | TWD 129.00 1.00 0.78% |
| Symbol | Soft |
Soft World '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 Soft World'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 Soft World.
| 12/07/2023 |
| 12/01/2024 |
If you would invest 0.00 in Soft World on December 7, 2023 and sell it all today you would earn a total of 0.00 from holding Soft World International or generate 0.0% return on investment in Soft World over 360 days. Soft World is related to or competes with Gamania Digital, Chinese Gamer, Softstar Entertainment, International Games, and Coretronic. Soft-World International Corporation develops, operates, and distributes games in Taiwan More
Soft World 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 Soft World'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 Soft World International upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.65 | |||
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 8.66 | |||
| Value At Risk | (2.66) | |||
| Potential Upside | 2.36 |
Soft World Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Soft World's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Soft World's standard deviation. In reality, there are many statistical measures that can use Soft World historical prices to predict the future Soft World's volatility.| Risk Adjusted Performance | 0.0052 | |||
| Jensen Alpha | (0.1) | |||
| Total Risk Alpha | (0.27) | |||
| Sortino Ratio | (0.08) | |||
| Treynor Ratio | (0.01) |
Soft World International Backtested Returns
At this stage we consider Soft Stock to be very steady. Soft World International owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0077, which indicates the firm had a 0.0077% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Soft World International, which you can use to evaluate the volatility of the company. Please validate Soft World's Semi Deviation of 1.36, coefficient of variation of 880722.28, and Risk Adjusted Performance of 0.0052 to confirm if the risk estimate we provide is consistent with the expected return of 0.012%. The entity has a beta of 0.67, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Soft World's returns are expected to increase less than the market. However, during the bear market, the loss of holding Soft World is expected to be smaller as well. Soft World International right now has a risk of 1.56%. Please validate Soft World semi deviation, coefficient of variation, and the relationship between the mean deviation and downside deviation , to decide if Soft World will be following its existing price patterns.
Auto-correlation | 0.55 |
Modest predictability
Soft World International has modest predictability. Overlapping area represents the amount of predictability between Soft World time series from 7th of December 2023 to 4th of June 2024 and 4th of June 2024 to 1st 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 Soft World International price movement. The serial correlation of 0.55 indicates that about 55.0% of current Soft World price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.55 | |
| Spearman Rank Test | 0.34 | |
| Residual Average | 0.0 | |
| Price Variance | 42.55 |
Soft World International lagged returns against current returns
Autocorrelation, which is Soft World 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 Soft World's stock expected returns. We can calculate the autocorrelation of Soft World returns to help us make a trade decision. For example, suppose you find that Soft World 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 |
Soft World 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 Soft World stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Soft World stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Soft World stock over time.
Current vs Lagged Prices |
| Timeline |
Soft World Lagged Returns
When evaluating Soft World's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Soft World stock have on its future price. Soft World 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, Soft World autocorrelation shows the relationship between Soft World stock current value and its past values and can show if there is a momentum factor associated with investing in Soft World International.
Regressed Prices |
| Timeline |
Pair Trading with Soft World
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 Soft World 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 Soft World will appreciate offsetting losses from the drop in the long position's value.Moving together with Soft Stock
Moving against Soft Stock
| 0.56 | 4994 | X Legend Entertainment | PairCorr |
| 0.51 | 6542 | GameSparcs | PairCorr |
| 0.49 | 6482 | Fun Yours Technology Split | PairCorr |
| 0.47 | 2072 | Century Wind Power | PairCorr |
| 0.38 | 4546 | Chaheng Precision | PairCorr |
The ability to find closely correlated positions to Soft World could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Soft World 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 Soft World - 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 Soft World International to buy it.
The correlation of Soft World 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 Soft World moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Soft World International 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 Soft World 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.Additional Tools for Soft Stock Analysis
When running Soft World's price analysis, check to measure Soft World's 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 Soft World is operating at the current time. Most of Soft World's value examination focuses on studying past and present price action to predict the probability of Soft World's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Soft World's price. Additionally, you may evaluate how the addition of Soft World to your portfolios can decrease your overall portfolio volatility.