{"id":1491,"date":"2024-06-13T12:18:39","date_gmt":"2024-06-13T12:18:39","guid":{"rendered":"https:\/\/www.tejwin.com\/en\/insights\/counter-indicator\/"},"modified":"2024-06-13T12:18:39","modified_gmt":"2024-06-13T12:18:39","slug":"counter-indicator","status":"publish","type":"insight","link":"https:\/\/www.tejwin.com\/en\/insights\/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":"<figure class=\"wp-block-image aligncenter size-full is-resized caption-align-center\"><img loading=\"lazy\" decoding=\"async\" alt=\"counter-indicator\" class=\"wp-image-24190\" height=\"2666\" src=\"https:\/\/www.tejwin.com\/en\/wp-content\/uploads\/2026\/08\/image-38.jpeg\" style=\"object-fit:cover;width:840px;height:auto\" width=\"3999\"\/><figcaption class=\"wp-element-caption\">Photo by <a class=\"ek-link\" href=\"https:\/\/unsplash.com\/@markuswinkler?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" rel=\"noopener\" target=\"_blank\">Markus Winkler<\/a> on <a class=\"ek-link\" href=\"https:\/\/unsplash.com\/photos\/black-and-silver-laptop-computer-IrRbSND5EUc?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" rel=\"noopener\" target=\"_blank\">Unsplash<\/a><\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Highlight<\/h2>\n<ul class=\"wp-block-list\">\n<li>Article Difficulty\uff1a\u2605\u2606\u2606\u2606\u2606<\/li>\n<li>Analyze the relationship between the counter-indicator proposed by authority and the company\u2019s stock price.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Preface<\/h2>\n<p class=\"wp-block-paragraph\">The \u201cFinancial Focus Section\u201d 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 \u201cFinancial Focus Section\u201d to \u201cFinancial and Trading Information Focus Section\u201d and divided the original 9 financial indicators into 7 financial information indicators and 5 trading information indicators. This article will utilize the Stock Exchange\u2019s 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<ol class=\"wp-block-list\">\n<li>Change in trading methods or imposition of trading suspensions<\/li>\n<li>Recent financial reports show net asset value per share below $10 and three consecutive accounting years of losses.<\/li>\n<li>Recent financial reports show net asset value per share below $10, debt ratio above 60%, and current ratio &lt;1<\/li>\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<li>Loans to others in the past month exceed 30% of the net value in the most recent financial report.<\/li>\n<li>Endorsement guarantees in the past month exceed 1.5 times the net value in the most recent financial report.<\/li>\n<li>Meets any other specified indicator.<\/li>\n<\/ol>\n<p class=\"wp-block-paragraph\">For details, please refer to: <a class=\"ek-link\" href=\"https:\/\/mops.twse.com.tw\/mops\/web\/t211sb01_q1\" rel=\"noopener\" target=\"_blank\">\u516c\u958b\u8cc7\u8a0a\u89c0\u6e2c\u7ad9 \u2013 \u8ca1\u52d9\u8cc7\u8a0a\u91cd\u9ede\u5c08\u5340<\/a><\/p>\n<h2 class=\"wp-block-heading\">Editing Environment and Module Requirements<\/h2>\n<p class=\"wp-block-paragraph\">This article uses Windows and Jupyter as the editor.<\/p>\n<h2 class=\"wp-block-heading\">Database Usage<\/h2>\n<ul class=\"wp-block-list\">\n<li><mark class=\"has-inline-color has-vivid-cyan-blue-color\" style=\"background-color:rgba(0, 0, 0, 0)\">TWN\/APRCD1(TSE\/OTC Adjusted_Price(Daily)-Ex_R+D)<\/mark><\/li>\n<li><a class=\"ek-link\" href=\"\/en\/databank-solution\/fundamental-data\/\">TEJ \u2013 Databank Solution \u2013 Company Attribute \u2013 Financial Information Indicators<\/a><\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Relationship between key stock price counter-indicator and stock price<\/h2>\n<h3 class=\"wp-block-heading\">Data Import<\/h3>\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<p class=\"has-text-align-center wp-block-paragraph\">Import the Financial Information Focus Section table and select dates and listed companies.<\/p>\n<figure class=\"wp-block-image size-full is-resized caption-align-center\"><img loading=\"lazy\" decoding=\"async\" alt=\"counter-indicator\" class=\"wp-image-24083\" height=\"497\" src=\"https:\/\/www.tejwin.com\/en\/wp-content\/uploads\/2026\/08\/image-427.png\" style=\"width:840px;height:auto\" width=\"899\"\/><figcaption class=\"wp-element-caption\">Table 1: Financial Information Focus Section Table<\/figcaption><\/figure>\n<p class=\"has-text-align-center wp-block-paragraph\">Import TEJ API Database<\/p>\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':['coid', 'mdate', 'close_adj']},\npaginate = True,\n)\ndata<\/code><\/pre>\n<figure class=\"wp-block-image aligncenter size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" alt=\"counter-indicator\" class=\"wp-image-24143\" height=\"623\" src=\"https:\/\/www.tejwin.com\/en\/wp-content\/uploads\/2026\/08\/E89EA2E5B995E693B7E58F96E795ABE99DA2-2024-06-12-105508-2.png\" style=\"object-fit:cover\" width=\"394\"\/><figcaption class=\"wp-element-caption\">Table 2: Ex-Dividend and Ex-Rights Adjustment Table<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">Combine the Financial Information Focus Section Table and the Ex-Dividend and Ex-Rights Adjustment Table.<\/p>\n<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" alt=\"counter-indicator\" class=\"wp-image-24092\" height=\"492\" src=\"https:\/\/www.tejwin.com\/en\/wp-content\/uploads\/2026\/08\/image-431.png\" width=\"899\"\/><figcaption class=\"wp-element-caption\">Table 3: Combined Financial Information Focus Section and Ex-Dividend\/Ex-Rights Adjustment Table<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">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<figure class=\"wp-block-image size-full caption-align-center\"><img loading=\"lazy\" decoding=\"async\" alt=\"counter-indicator\" class=\"wp-image-24094\" height=\"584\" src=\"https:\/\/www.tejwin.com\/en\/wp-content\/uploads\/2026\/08\/image-432.png\" style=\"object-fit:cover\" width=\"851\"\/><figcaption class=\"wp-element-caption\">OLS model<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">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 \u201cratio of endorsement guarantees to net asset value\u201d and \u201cother factors considered by the Taiwan Stock Exchange\u201d 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\u2019 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\u2019s prospects.<\/p>\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n<p class=\"wp-block-paragraph\">From our analysis of the Financial Information Focus Section table and individual stock prices, we found that the \u201cratio of endorsement guarantees to net asset value\u201d and \u201cother factors considered by the Taiwan Stock Exchange\u201d 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 \u201cprice-to-book ratio\u201d 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<p class=\"wp-block-paragraph\">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 class=\"ek-link\" href=\"\/en\/databank-solution\/market-data\/\">TEJ Market Data<\/a> allows for the construction of tailored analyses or trading strategies using high-quality databases.<\/p>\n<p class=\"wp-block-paragraph\">Reminder: <strong>The strategy is only for reference and does not represent recommendations or advice on financial products and investments.<\/strong><\/p>\n<p class=\"wp-block-paragraph\">\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=\"\/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<p class=\"wp-block-paragraph\">\n<h2 class=\"wp-block-heading\">Extended Reading<\/h2>\n<ul class=\"wp-block-list\">\n<li><a class=\"ek-link\" href=\"\/en\/news\/corporate-events\/\">Examine the Impact of Corporate Events on Stock Returns by Using Event Study<\/a><\/li>\n<li><a class=\"ek-link\" href=\"\/en\/insight\/insider-transfers\/\">\u201cBlock Trades\u201d as Warning Signals? Analyzing Insider Transfers and Changes in Stock Prices Using TEJ API<\/a><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\" style=\"font-size:26px\"><strong>About us<\/strong><\/p>\n<ul class=\"wp-block-list\">\n<li><a class=\"ek-link\" href=\"\/en\/\">TEJ Website<\/a><\/li>\n<li><a class=\"ek-link\" href=\"https:\/\/www.linkedin.com\/company\/taiwan-economic-journal-co-ltd-\/\" rel=\"noreferrer noopener\" target=\"_blank\">LinkedIn<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This article will utilize the Stock Exchange\u2019s provided 7 financial information indicators and explore their correlation with stock price counter-indicators using the TEJ API.<\/p>\n","protected":false},"featured_media":1490,"template":"","tags":[97,65,70],"insight_category":[16,88],"class_list":["post-1491","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-data-analysis","tag-python","tag-tej-api","insight_category-quant-data-science","insight_category-market-knowledge-data-guides"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/1491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/types\/insight"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media\/1490"}],"wp:attachment":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media?parent=1491"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/tags?post=1491"},{"taxonomy":"insight_category","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight_category?post=1491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}