PT Century (Indonesia) Market Value

Symbol

CNTX

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 PT Century'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 PT Century.

PT Century Upside/Downside Indicators

PT Century Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for PT Century's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as PT Century's standard deviation. In reality, there are many statistical measures that can use PT Century historical prices to predict the future PT Century's volatility.

Autocorrelation, which is PT Century 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 PT Century's stock expected returns. We can calculate the autocorrelation of PT Century returns to help us make a trade decision. For example, suppose you find that PT Century 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.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If PT Century stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if PT Century stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in PT Century stock over time.

When evaluating PT Century's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of PT Century stock have on its future price. PT Century 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, PT Century autocorrelation shows the relationship between PT Century stock current value and its past values and can show if there is a momentum factor associated with investing in PT Century Textile.

PT Century financial ratios help investors to determine whether CNTX 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 CNTX with respect to the benefits of owning PT Century security.