Indus (Pakistan) Market Value
| INDU Stock | 2,027 26.35 1.32% |
| Symbol | Indus |
Indus '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 Indus' 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 Indus.
| 12/09/2023 |
| 12/03/2024 |
If you would invest 0.00 in Indus on December 9, 2023 and sell it all today you would earn a total of 0.00 from holding Indus Motor or generate 0.0% return on investment in Indus over 360 days. Indus is related to or competes with K Electric, Engro, Lucky Cement, Hub Power, Pakistan Telecommunicatio, Bestway Cement, and Fauji Fertilizer. More
Indus 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 Indus' 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 Indus Motor upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.7731 | |||
| Information Ratio | 0.1562 | |||
| Maximum Drawdown | 7.64 | |||
| Value At Risk | (1.09) | |||
| Potential Upside | 2.57 |
Indus Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Indus' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Indus' standard deviation. In reality, there are many statistical measures that can use Indus historical prices to predict the future Indus' volatility.| Risk Adjusted Performance | 0.2003 | |||
| Jensen Alpha | 0.2851 | |||
| Total Risk Alpha | 0.1225 | |||
| Sortino Ratio | 0.2486 | |||
| Treynor Ratio | 1.64 |
Indus Motor Backtested Returns
Indus appears to be very steady, given 3 months investment horizon. Indus Motor holds Efficiency (Sharpe) Ratio of 0.25, which attests that the entity had a 0.25% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Indus Motor, which you can use to evaluate the volatility of the firm. Please utilize Indus' Market Risk Adjusted Performance of 1.65, risk adjusted performance of 0.2003, and Downside Deviation of 0.7731 to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Indus holds a performance score of 19. The company retains a Market Volatility (i.e., Beta) of 0.19, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Indus' returns are expected to increase less than the market. However, during the bear market, the loss of holding Indus is expected to be smaller as well. Please check Indus' coefficient of variation, jensen alpha, and the relationship between the downside deviation and standard deviation , to make a quick decision on whether Indus' current trending patterns will revert.
Auto-correlation | 0.80 |
Very good predictability
Indus Motor has very good predictability. Overlapping area represents the amount of predictability between Indus time series from 9th of December 2023 to 6th of June 2024 and 6th of June 2024 to 3rd 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 Indus Motor price movement. The serial correlation of 0.8 indicates that around 80.0% of current Indus price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.8 | |
| Spearman Rank Test | 0.96 | |
| Residual Average | 0.0 | |
| Price Variance | 25 K |
Indus Motor lagged returns against current returns
Autocorrelation, which is Indus 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 Indus' stock expected returns. We can calculate the autocorrelation of Indus returns to help us make a trade decision. For example, suppose you find that Indus 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 |
Indus 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 Indus stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Indus stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Indus stock over time.
Current vs Lagged Prices |
| Timeline |
Indus Lagged Returns
When evaluating Indus' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Indus stock have on its future price. Indus 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, Indus autocorrelation shows the relationship between Indus stock current value and its past values and can show if there is a momentum factor associated with investing in Indus Motor.
Regressed Prices |
| Timeline |
Pair Trading with Indus
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 Indus 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 Indus will appreciate offsetting losses from the drop in the long position's value.Moving together with Indus Stock
| 0.84 | OGDC | Oil and Gas | PairCorr |
| 0.95 | PSO | Pakistan State Oil | PairCorr |
| 0.95 | PPL | Pakistan Petroleum | PairCorr |
| 0.88 | FFC | Fauji Fertilizer | PairCorr |
| 0.63 | HBL | Habib Bank | PairCorr |
The ability to find closely correlated positions to Indus could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Indus 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 Indus - 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 Indus Motor to buy it.
The correlation of Indus 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 Indus moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Indus Motor 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 Indus 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.Other Information on Investing in Indus Stock
Indus financial ratios help investors to determine whether Indus 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 Indus with respect to the benefits of owning Indus security.