Formosa Petrochemical (Taiwan) Market Value
| 6505 Stock | TWD 40.90 1.05 2.50% |
| Symbol | Formosa |
Formosa Petrochemical '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 Petrochemical'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 Formosa Petrochemical.
| 06/02/2024 |
| 11/29/2024 |
If you would invest 0.00 in Formosa Petrochemical on June 2, 2024 and sell it all today you would earn a total of 0.00 from holding Formosa Petrochemical Corp or generate 0.0% return on investment in Formosa Petrochemical over 180 days. Formosa Petrochemical is related to or competes with Taiwan Taomee, AP Memory, RichWave Technology, Fitipower Integrated, Sysgration, Andes Technology, and Tung Thih. Formosa Petrochemical Corporation engages in petrochemical and public utility businesses in Taiwan, the Philippines, Sin... More
Formosa Petrochemical 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 Petrochemical'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 Formosa Petrochemical Corp upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.31) | |||
| Maximum Drawdown | 9.39 | |||
| Value At Risk | (3.51) | |||
| Potential Upside | 2.89 |
Formosa Petrochemical Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Formosa Petrochemical's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Formosa Petrochemical's standard deviation. In reality, there are many statistical measures that can use Formosa Petrochemical historical prices to predict the future Formosa Petrochemical's volatility.| Risk Adjusted Performance | (0.18) | |||
| Jensen Alpha | (0.54) | |||
| Total Risk Alpha | (0.79) | |||
| Treynor Ratio | (1.15) |
Formosa Petrochemical Backtested Returns
Formosa Petrochemical secures Sharpe Ratio (or Efficiency) of -0.21, which denotes the company had a -0.21% return per unit of risk over the last 3 months. Formosa Petrochemical Corp exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Formosa Petrochemical's Variance of 3.82, standard deviation of 1.96, and Mean Deviation of 1.44 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.43, which means possible diversification benefits within a given portfolio. As returns on the market increase, Formosa Petrochemical's returns are expected to increase less than the market. However, during the bear market, the loss of holding Formosa Petrochemical is expected to be smaller as well. At this point, Formosa Petrochemical has a negative expected return of -0.42%. Please make sure to confirm Formosa Petrochemical's total risk alpha, maximum drawdown, potential upside, as well as the relationship between the treynor ratio and value at risk , to decide if Formosa Petrochemical performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.75 |
Good predictability
Formosa Petrochemical Corp has good predictability. Overlapping area represents the amount of predictability between Formosa Petrochemical time series from 2nd of June 2024 to 31st of August 2024 and 31st of August 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 Petrochemical price movement. The serial correlation of 0.75 indicates that around 75.0% of current Formosa Petrochemical price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.75 | |
| Spearman Rank Test | 0.62 | |
| Residual Average | 0.0 | |
| Price Variance | 12.43 |
Formosa Petrochemical lagged returns against current returns
Autocorrelation, which is Formosa Petrochemical 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 Petrochemical's stock expected returns. We can calculate the autocorrelation of Formosa Petrochemical returns to help us make a trade decision. For example, suppose you find that Formosa Petrochemical 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 Petrochemical 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 Petrochemical stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Formosa Petrochemical stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Formosa Petrochemical stock over time.
Current vs Lagged Prices |
| Timeline |
Formosa Petrochemical Lagged Returns
When evaluating Formosa Petrochemical's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Formosa Petrochemical stock have on its future price. Formosa Petrochemical 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 Petrochemical autocorrelation shows the relationship between Formosa Petrochemical stock current value and its past values and can show if there is a momentum factor associated with investing in Formosa Petrochemical 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 Petrochemical's price analysis, check to measure Formosa Petrochemical'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 Formosa Petrochemical is operating at the current time. Most of Formosa Petrochemical's value examination focuses on studying past and present price action to predict the probability of Formosa Petrochemical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formosa Petrochemical's price. Additionally, you may evaluate how the addition of Formosa Petrochemical to your portfolios can decrease your overall portfolio volatility.