TPL Insurance (Pakistan) Market Value
| TPLI Stock | 11.00 0.51 4.86% |
| Symbol | TPL |
TPL Insurance '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 TPL Insurance'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 TPL Insurance.
| 11/04/2024 |
| 12/04/2024 |
If you would invest 0.00 in TPL Insurance on November 4, 2024 and sell it all today you would earn a total of 0.00 from holding TPL Insurance or generate 0.0% return on investment in TPL Insurance over 30 days. TPL Insurance is related to or competes with Oil, Pakistan State, Pakistan Petroleum, Fauji Fertilizer, Habib Bank, Mari Petroleum, and MCB Bank. More
TPL Insurance 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 TPL Insurance'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 TPL Insurance upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.28 | |||
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 15.47 | |||
| Value At Risk | (4.63) | |||
| Potential Upside | 4.62 |
TPL Insurance Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for TPL Insurance's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as TPL Insurance's standard deviation. In reality, there are many statistical measures that can use TPL Insurance historical prices to predict the future TPL Insurance's volatility.| Risk Adjusted Performance | 0.0227 | |||
| Jensen Alpha | 0.0951 | |||
| Total Risk Alpha | (0.40) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | (0.15) |
TPL Insurance Backtested Returns
At this point, TPL Insurance is somewhat reliable. TPL Insurance owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0112, which indicates the firm had a 0.0112% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for TPL Insurance, which you can use to evaluate the volatility of the company. Please validate TPL Insurance's coefficient of variation of 5084.8, and Risk Adjusted Performance of 0.0227 to confirm if the risk estimate we provide is consistent with the expected return of 0.0376%. The entity has a beta of -0.38, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning TPL Insurance are expected to decrease at a much lower rate. During the bear market, TPL Insurance is likely to outperform the market. TPL Insurance presently has a risk of 3.36%. Please validate TPL Insurance jensen alpha, sortino ratio, maximum drawdown, as well as the relationship between the total risk alpha and treynor ratio , to decide if TPL Insurance will be following its existing price patterns.
Auto-correlation | -0.55 |
Good reverse predictability
TPL Insurance has good reverse predictability. Overlapping area represents the amount of predictability between TPL Insurance time series from 4th of November 2024 to 19th of November 2024 and 19th of November 2024 to 4th 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 TPL Insurance price movement. The serial correlation of -0.55 indicates that about 55.0% of current TPL Insurance price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.55 | |
| Spearman Rank Test | -0.22 | |
| Residual Average | 0.0 | |
| Price Variance | 0.19 |
TPL Insurance lagged returns against current returns
Autocorrelation, which is TPL Insurance 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 TPL Insurance's stock expected returns. We can calculate the autocorrelation of TPL Insurance returns to help us make a trade decision. For example, suppose you find that TPL Insurance 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 |
TPL Insurance 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 TPL Insurance stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if TPL Insurance stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in TPL Insurance stock over time.
Current vs Lagged Prices |
| Timeline |
TPL Insurance Lagged Returns
When evaluating TPL Insurance's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of TPL Insurance stock have on its future price. TPL Insurance 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, TPL Insurance autocorrelation shows the relationship between TPL Insurance stock current value and its past values and can show if there is a momentum factor associated with investing in TPL Insurance.
Regressed Prices |
| Timeline |
Pair Trading with TPL Insurance
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 TPL Insurance 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 TPL Insurance will appreciate offsetting losses from the drop in the long position's value.Moving against TPL Stock
The ability to find closely correlated positions to TPL Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TPL Insurance 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 TPL Insurance - 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 TPL Insurance to buy it.
The correlation of TPL Insurance 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 TPL Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TPL Insurance 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 TPL Insurance 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 TPL Stock
TPL Insurance financial ratios help investors to determine whether TPL 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 TPL with respect to the benefits of owning TPL Insurance security.