ECSTELECOM (Korea) Market Value
| 067010 Stock | KRW 2,860 10.00 0.35% |
| Symbol | ECSTELECOM |
ECSTELECOM '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 ECSTELECOM'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 ECSTELECOM.
| 09/20/2022 |
| 09/09/2024 |
If you would invest 0.00 in ECSTELECOM on September 20, 2022 and sell it all today you would earn a total of 0.00 from holding ECSTELECOM Co or generate 0.0% return on investment in ECSTELECOM over 720 days. ECSTELECOM is related to or competes with Busan Industrial, Finebesteel, Shinhan Inverse, Fine Besteel, ISU Chemical, and NAU IB. ECSTELECOM Co., Ltd. provides enterprise communication solutions and services in South Korea More
ECSTELECOM 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 ECSTELECOM'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 ECSTELECOM Co upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 9.44 | |||
| Value At Risk | (2.81) | |||
| Potential Upside | 2.15 |
ECSTELECOM Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for ECSTELECOM's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as ECSTELECOM's standard deviation. In reality, there are many statistical measures that can use ECSTELECOM historical prices to predict the future ECSTELECOM's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.34) | |||
| Treynor Ratio | (0.50) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ECSTELECOM's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
ECSTELECOM Backtested Returns
ECSTELECOM secures Sharpe Ratio (or Efficiency) of -0.13, which denotes the company had a -0.13% return per unit of volatility over the last 3 months. ECSTELECOM Co exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm ECSTELECOM's Market Risk Adjusted Performance of (0.49), standard deviation of 1.65, and Mean Deviation of 1.2 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, ECSTELECOM's returns are expected to increase less than the market. However, during the bear market, the loss of holding ECSTELECOM is expected to be smaller as well. At this point, ECSTELECOM has a negative expected return of -0.21%. Please make sure to confirm ECSTELECOM's jensen alpha, treynor ratio, value at risk, as well as the relationship between the total risk alpha and maximum drawdown , to decide if ECSTELECOM performance from the past will be repeated in the future.
Auto-correlation | 0.63 |
Good predictability
ECSTELECOM Co has good predictability. Overlapping area represents the amount of predictability between ECSTELECOM time series from 20th of September 2022 to 15th of September 2023 and 15th of September 2023 to 9th of September 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 ECSTELECOM price movement. The serial correlation of 0.63 indicates that roughly 63.0% of current ECSTELECOM price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.63 | |
| Spearman Rank Test | -0.08 | |
| Residual Average | 0.0 | |
| Price Variance | 42.7 K |
ECSTELECOM lagged returns against current returns
Autocorrelation, which is ECSTELECOM 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 ECSTELECOM's stock expected returns. We can calculate the autocorrelation of ECSTELECOM returns to help us make a trade decision. For example, suppose you find that ECSTELECOM 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 |
ECSTELECOM 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 ECSTELECOM stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if ECSTELECOM stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in ECSTELECOM stock over time.
Current vs Lagged Prices |
| Timeline |
ECSTELECOM Lagged Returns
When evaluating ECSTELECOM's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of ECSTELECOM stock have on its future price. ECSTELECOM 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, ECSTELECOM autocorrelation shows the relationship between ECSTELECOM stock current value and its past values and can show if there is a momentum factor associated with investing in ECSTELECOM Co.
Regressed Prices |
| Timeline |
Pair Trading with ECSTELECOM
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 ECSTELECOM 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 ECSTELECOM will appreciate offsetting losses from the drop in the long position's value.Moving together with ECSTELECOM Stock
The ability to find closely correlated positions to ECSTELECOM could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ECSTELECOM 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 ECSTELECOM - 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 ECSTELECOM Co to buy it.
The correlation of ECSTELECOM 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 ECSTELECOM moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ECSTELECOM 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 ECSTELECOM 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 ECSTELECOM Stock
ECSTELECOM financial ratios help investors to determine whether ECSTELECOM 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 ECSTELECOM with respect to the benefits of owning ECSTELECOM security.