{"id":24348,"date":"2024-06-13T12:18:39","date_gmt":"2024-06-13T04:18:39","guid":{"rendered":"https:\/\/www.tejwin.com\/?post_type=insight&#038;p=24348"},"modified":"2024-06-19T16:42:53","modified_gmt":"2024-06-19T08:42:53","slug":"counter-indicator","status":"publish","type":"insight","link":"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/","title":{"rendered":"Counter-Indicator Analysis: Using TEJ API to Examine the Relationship Between Stock Prices and Counter-Indicators Issued By Authority&#8221;"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-resized caption-align-center\"><img fetchpriority=\"high\" decoding=\"async\" width=\"3999\" height=\"2666\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38.jpeg\" alt=\"counter-indicator\" class=\"wp-image-24190\" style=\"object-fit:cover;width:840px;height:auto\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38.jpeg 3999w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38-300x200.jpeg 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38-1024x683.jpeg 1024w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38-150x100.jpeg 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38-768x512.jpeg 768w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38-1536x1024.jpeg 1536w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-38-2048x1365.jpeg 2048w\" sizes=\"(max-width: 3999px) 100vw, 3999px\" \/><figcaption class=\"wp-element-caption\">Photo by <a href=\"https:\/\/unsplash.com\/@markuswinkler?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" class=\"ek-link\" target=\"_blank\" rel=\"noopener\">Markus Winkler<\/a> on <a href=\"https:\/\/unsplash.com\/photos\/black-and-silver-laptop-computer-IrRbSND5EUc?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" class=\"ek-link\" target=\"_blank\" rel=\"noopener\">Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1104d94cde2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1104d94cde2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Highlight\" >Highlight<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Preface\" >Preface<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Editing_Environment_and_Module_Requirements\" >Editing Environment and Module Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Database_Usage\" >Database Usage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Relationship_between_key_stock_price_counter-indicator_and_stock_price\" >Relationship between key stock price counter-indicator and stock price<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Data_Import\" >Data Import<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/counter-indicator\/#Extended_Reading\" >Extended Reading<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlight\"><\/span>Highlight<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Article Difficulty\uff1a\u2605\u2606\u2606\u2606\u2606<\/li>\n\n\n\n<li>Analyze the relationship between the counter-indicator proposed by authority and the company\u2019s stock price.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preface\"><\/span>Preface<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The &#8220;Financial Focus Section&#8221; was established by the Stock Exchange in 2007 with the aim of highlighting the operational risks of companies. It lists 9 indicators for investors to quickly assess the financial and operational status of companies, thereby excluding those with poor financial health. Starting in 2022, the Stock Exchange renamed the former &#8220;Financial Focus Section&#8221; to &#8220;Financial and Trading Information Focus Section&#8221; and divided the original 9 financial indicators into 7 financial information indicators and 5 trading information indicators. This article will utilize the Stock Exchange&#8217;s provided 7 financial information indicators and explore their correlation with stock price counter-indicators using the TEJ API. The financial information indicators are as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Change in trading methods or imposition of trading suspensions<\/li>\n\n\n\n<li>Recent financial reports show net asset value per share below $10 and three consecutive accounting years of losses.<\/li>\n\n\n\n<li>Recent financial reports show net asset value per share below $10, debt ratio above 60%, and current ratio &lt;1<\/li>\n\n\n\n<li>Recent financial reports show net asset value per share below $10 and negative operating cash flow in the past two accounting years and the most recent period.<\/li>\n\n\n\n<li>Loans to others in the past month exceed 30% of the net value in the most recent financial report.<\/li>\n\n\n\n<li>Endorsement guarantees in the past month exceed 1.5 times the net value in the most recent financial report.<\/li>\n\n\n\n<li>Meets any other specified indicator.<\/li>\n<\/ol>\n\n\n\n<p>For details, please refer to: <a href=\"https:\/\/mops.twse.com.tw\/mops\/web\/t211sb01_q1\" class=\"ek-link\" target=\"_blank\" rel=\"noopener\">\u516c\u958b\u8cc7\u8a0a\u89c0\u6e2c\u7ad9 &#8211; \u8ca1\u52d9\u8cc7\u8a0a\u91cd\u9ede\u5c08\u5340<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Editing_Environment_and_Module_Requirements\"><\/span>Editing Environment and Module Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This article uses Windows and Jupyter as the editor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Database_Usage\"><\/span>Database Usage<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">TWN\/APRCD1(TSE\/OTC Adjusted_Price(Daily)-Ex_R+D)<\/mark><\/li>\n\n\n\n<li><a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/databank-solution\/fundamental-data\/\" class=\"ek-link\">TEJ &#8211; Databank Solution &#8211; Company Attribute &#8211; Financial Information Indicators<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relationship_between_key_stock_price_counter-indicator_and_stock_price\"><\/span>Relationship between key stock price counter-indicator and stock price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Data_Import\"><\/span>Data Import<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<pre class=\"wp-block-code\"><code>import tejapi\nimport pandas as pd\n\n<code>tejapi.ApiConfig.api_key  = \"Your Key\"\n<\/code>tejapi.ApiConfig.api_base = \"https:\/\/api.tej.com.tw\"\ntejapi.ApiConfig.ignoretz = True<\/code><\/pre>\n\n\n\n<p class=\"has-text-align-center\">Import the Financial Information Focus Section table and select dates and listed companies.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized caption-align-center\"><img decoding=\"async\" width=\"899\" height=\"497\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-427.png\" alt=\"counter-indicator\" class=\"wp-image-24083\" style=\"width:840px;height:auto\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-427.png 899w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-427-300x166.png 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-427-150x83.png 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-427-768x425.png 768w\" sizes=\"(max-width: 899px) 100vw, 899px\" \/><figcaption class=\"wp-element-caption\">Table 1: Financial Information Focus Section Table<\/figcaption><\/figure>\n\n\n\n<p class=\"has-text-align-center\">Import TEJ API Database<\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>data = tejapi.get('TWN\/APRCD1',\ncoid = pool,\nmdate = {'gte':'2020-01-03', 'lte':'2024-06-07'},\nopts = {'columns':&#91;'coid', 'mdate', 'close_adj']},\npaginate = True,\n)\ndata<\/code><\/pre>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full caption-align-center\"><img decoding=\"async\" width=\"394\" height=\"623\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u87a2\u5e55\u64f7\u53d6\u756b\u9762-2024-06-12-105508-2.png\" alt=\"counter-indicator\" class=\"wp-image-24143\" style=\"object-fit:cover\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u87a2\u5e55\u64f7\u53d6\u756b\u9762-2024-06-12-105508-2.png 394w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u87a2\u5e55\u64f7\u53d6\u756b\u9762-2024-06-12-105508-2-190x300.png 190w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/\u87a2\u5e55\u64f7\u53d6\u756b\u9762-2024-06-12-105508-2-95x150.png 95w\" sizes=\"(max-width: 394px) 100vw, 394px\" \/><figcaption class=\"wp-element-caption\">Table 2: Ex-Dividend and Ex-Rights Adjustment Table<\/figcaption><\/figure>\n\n\n\n<p>Combine the Financial Information Focus Section Table and the Ex-Dividend and Ex-Rights Adjustment Table.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"899\" height=\"492\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-431.png\" alt=\"counter-indicator\" class=\"wp-image-24092\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-431.png 899w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-431-300x164.png 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-431-150x82.png 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-431-768x420.png 768w\" sizes=\"(max-width: 899px) 100vw, 899px\" \/><figcaption class=\"wp-element-caption\">Table 3: Combined Financial Information Focus Section and Ex-Dividend\/Ex-Rights Adjustment Table<\/figcaption><\/figure>\n\n\n\n<p>Using net asset value per share, net profit after tax for the last three years, current ratio and debt ratio, operating cash flow for the last three years, the ratio of loans to others to net asset value, the ratio of endorsement guarantees to net asset value, and any other factors deemed necessary by the Taiwan Stock Exchange as independent variables, create a regression model with adjusted closing price as the dependent variable.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"851\" height=\"584\" src=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-432.png\" alt=\"counter-indicator\" class=\"wp-image-24094\" style=\"object-fit:cover\" srcset=\"https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-432.png 851w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-432-300x206.png 300w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-432-150x103.png 150w, https:\/\/tejwin20260323.j.webweb.today\/wp-content\/uploads\/image-432-768x527.png 768w\" sizes=\"(max-width: 851px) 100vw, 851px\" \/><figcaption class=\"wp-element-caption\">OLS model<\/figcaption><\/figure>\n\n\n\n<p>According to the chart above, the R-squared value reaches 0.691, indicating that the model can explain nearly 69% of the variance in the dependent variable. It was observed that the indicators &#8220;ratio of endorsement guarantees to net asset value&#8221; and &#8220;other factors considered by the Taiwan Stock Exchange&#8221; exhibit a significant inverse relationship with stock prices. Particularly noteworthy is the latter indicator, which, despite being binary in nature (either it occurs or not), exerts a substantial impact on stock prices when it does occur. This underscores investors&#8217; sensitivity to regulatory considerations. Additionally, a higher ratio of endorsement guarantees to net asset value suggests that the company has provided guarantees far exceeding its net worth, indicating significant liabilities. If these guarantees are executed, the company may need to pay substantial amounts, affecting investor confidence in the company&#8217;s prospects.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From our analysis of the Financial Information Focus Section table and individual stock prices, we found that the &#8220;ratio of endorsement guarantees to net asset value&#8221; and &#8220;other factors considered by the Taiwan Stock Exchange&#8221; exhibit significant counter-indicator trends for company stock prices compared to other indicators. The regulatory considerations by the authorities are particularly crucial to investors. On the other hand, the &#8220;price-to-book ratio&#8221; shows a noticeable positive correlation with stock prices. However, the effects of other indicators on stock prices are insignificant. Overall, the OLS regression model provides an in-depth analysis of the factors affecting stock prices. These findings offer valuable insights for investors evaluating company investment decisions.<\/p>\n\n\n\n<p>This implementation utilized the TEJ API for key stock price counter-indicator analysis, leveraging the efficient data from the TEJ Data Bank and regression model packages. This approach not only saves time and effort but also provides investors with a diverse set of evaluation metrics. Choosing relevant solutions from the <a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/databank-solution\/market-data\/\" class=\"ek-link\">TEJ Market Data<\/a> allows for the construction of tailored analyses or trading strategies using high-quality databases.<\/p>\n\n\n\n<p>Reminder: <strong>The strategy is only for reference and does not represent recommendations or advice on financial products and investments.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:20px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/databank-solution\/market-data\/\" style=\"border-radius:16px;background:linear-gradient(135deg,rgb(255,234,148) 0%,rgb(106,215,179) 50%,rgb(33,139,194) 100%)\"><strong>Access to Comprehensive <strong>Industrial Market <\/strong>Data<\/strong><br><strong>Start Building Portfolios That Outperforms the Market Today!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extended_Reading\"><\/span>Extended Reading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/news\/corporate-events\/\" class=\"ek-link\">Examine the Impact of Corporate Events on Stock Returns by Using Event Study<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/insight\/insider-transfers\/\" class=\"ek-link\">&#8220;Block Trades&#8221; as Warning Signals? Analyzing Insider Transfers and Changes in Stock Prices Using TEJ API<\/a><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:26px\"><strong>About us<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/tejwin20260323.j.webweb.today\/en\/\" class=\"ek-link\">TEJ Website<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.linkedin.com\/company\/taiwan-economic-journal-co-ltd-\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"ek-link\">LinkedIn<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This article will utilize the Stock Exchange&#8217;s provided 7 financial information indicators and explore their correlation with stock price counter-indicators using the TEJ API. <\/p>\n","protected":false},"featured_media":24106,"template":"","tags":[2371,3005,3007],"insight-category":[690,50],"class_list":["post-24348","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-python","tag-tejapi-application","tag-tejapi-data-analysis","insight-category-data-analysis","insight-category-fintech"],"acf":[],"_links":{"self":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight\/24348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":20,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight\/24348\/revisions"}],"predecessor-version":[{"id":30528,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight\/24348\/revisions\/30528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/media\/24106"}],"wp:attachment":[{"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/media?parent=24348"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/tags?post=24348"},{"taxonomy":"insight-category","embeddable":true,"href":"https:\/\/tejwin20260323.j.webweb.today\/en\/wp-json\/wp\/v2\/insight-category?post=24348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}