# CROBEX (Croatia) Market Value

CRBEX Index | 2,282 22.91 1.01% |

Symbol | CROBEX |

## CROBEX '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 CROBEX's index 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 CROBEX.

12/10/2022 |
| 06/08/2023 |

If you would invest

**0.00**in CROBEX on**December 10, 2022**and sell it all today you would**earn a total of 0.00**from holding CROBEX or generate**0.0%**return on investment in CROBEX over**180**days.## CROBEX 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 CROBEX's index 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 CROBEX upside and downside potential and time the market with a certain degree of confidence.

Downside Deviation | 0.5222 | |||

Information Ratio | 0.0782 | |||

Maximum Drawdown | 2.34 | |||

Value At Risk | (0.71) | |||

Potential Upside | 0.5768 |

## CROBEX Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for CROBEX's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as CROBEX's standard deviation. In reality, there are many statistical measures that can use CROBEX historical prices to predict the future CROBEX's volatility.Risk Adjusted Performance | 0.0256 | |||

Total Risk Alpha | 0.0207 | |||

Sortino Ratio | 0.0671 |

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of CROBEX'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. Please use the tools below to analyze the current value of CROBEX in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as CROBEX. Your research has to be compared to or analyzed against CROBEX's peers to derive any actionable benefits. When done correctly, CROBEX's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in CROBEX.

## CROBEX Backtested Returns

CROBEX secures Sharpe Ratio (or Efficiency) of 0.0203, which signifies that the index had 0.0203% of return per unit of risk over the last 3 months. Our philosophy in foreseeing the volatility of an index is to use all available market data together with index-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for CROBEX, which you can use to evaluate the future volatility of the entity.

The index shows a Beta (market volatility) of 0.0, which signifies not very significant fluctuations relative to the market. Let's try to break down what CROBEX's beta means in this case. the returns on MARKET and CROBEX are completely uncorrelated. Although it is important to respect CROBEX historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in foreseeing future performance of any index is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing CROBEX technical indicators, you can now evaluate if the expected return of 0.0093% will be sustainable into the future.

## Auto-correlation | 0.40 |

### Average predictability

CROBEX has average predictability. Overlapping area represents the amount of predictability between CROBEX time series from 10th of December 2022 to 10th of March 2023 and 10th of March 2023 to 8th of June 2023. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of CROBEX price movement. The serial correlation of

**0.4**indicates that just about 40.0% of current CROBEX price fluctuation can be explain by its past prices.Correlation Coefficient | 0.4 | |

Spearman Rank Test | 0.55 | |

Residual Average | 0.0 | |

Price Variance | 237.11 |

## CROBEX lagged returns against current returns

Autocorrelation, which is CROBEX index'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 CROBEX's index expected returns. We can calculate the autocorrelation of CROBEX returns to help us make a trade decision. For example, suppose you find that CROBEX index 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 stock movement to match the lagging time series.

Current and Lagged Values |

Timeline |

## CROBEX 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 CROBEX index is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if CROBEX index is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in CROBEX index over time.

Current vs Lagged Prices |

Timeline |

## CROBEX Lagged Returns

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

Regressed Prices |

Timeline |

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards CROBEX in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, CROBEX's short interest history, or implied volatility extrapolated from CROBEX options trading.

## Pair Trading with CROBEX

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 CROBEX 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 CROBEX will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to CROBEX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CROBEX 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 CROBEX - 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 CROBEX to buy it.

The correlation of CROBEX is a statistical measure of how it moves in relation to other equities. 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 CROBEX moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CROBEX 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 CROBEX 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.Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any index could be tightly coupled with the direction of predictive economic indicators such as various price indices. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

## Complementary Tools for CROBEX Index analysis

When running CROBEX's price analysis, check to measure CROBEX'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 CROBEX is operating at the current time. Most of CROBEX's value examination focuses on studying past and present price action to predict the probability of CROBEX's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CROBEX's price. Additionally, you may evaluate how the addition of CROBEX to your portfolios can decrease your overall portfolio volatility.

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Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |

Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |

CROBEX technical index analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, index market cycles, or different charting patterns.