Dua Putra (Indonesia) Volatility
Dua Putra Utama secures Sharpe Ratio (or Efficiency) of -0.35, which denotes the company had a -0.35% return per unit of standard deviation over the last 3 months. Dua Putra Utama exposes zero different technical indicators, which can help you to evaluate volatility embedded in its price movement.
Dua |
Dua Putra Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Dua daily returns, and it is calculated using variance and standard deviation. We also use Dua's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Dua Putra volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Dua Putra can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Dua Putra at lower prices. For example, an investor can purchase Dua stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Dua Putra's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Dua Stock
Moving against Dua Stock
Dua Putra Market Sensitivity And Downside Risk
Dua Putra's beta coefficient measures the volatility of Dua stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Dua stock's returns against your selected market. In other words, Dua Putra's beta of -0.15 provides an investor with an approximation of how much risk Dua Putra stock can potentially add to one of your existing portfolios. Dua Putra Utama exhibits very low volatility with skewness of 0.1 and kurtosis of -0.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dua Putra's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dua Putra's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Dua Putra Utama Demand TrendCheck current 90 days Dua Putra correlation with market (NYSE Composite)Dua Beta |
Dua standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 3.94 |
It is essential to understand the difference between upside risk (as represented by Dua Putra's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Dua Putra's daily returns or price. Since the actual investment returns on holding a position in dua stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Dua Putra.
Dua Putra Utama Stock Volatility Analysis
Volatility refers to the frequency at which Dua Putra stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Dua Putra's price changes. Investors will then calculate the volatility of Dua Putra's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Dua Putra's volatility:
Historical Volatility
This type of stock volatility measures Dua Putra's fluctuations based on previous trends. It's commonly used to predict Dua Putra's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Dua Putra's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Dua Putra's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Dua Putra Utama Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Dua Putra Projected Return Density Against Market
Assuming the 90 days trading horizon Dua Putra Utama has a beta of -0.1514 suggesting as returns on the benchmark increase, returns on holding Dua Putra are expected to decrease at a much lower rate. During a bear market, however, Dua Putra Utama is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Dua Putra or Food Products sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Dua Putra's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Dua stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Dua Putra Utama has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Dua Putra Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Dua Putra Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Dua Putra is -289.5. The daily returns are distributed with a variance of 15.51 and standard deviation of 3.94. The mean deviation of Dua Putra Utama is currently at 3.22. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.64
α | Alpha over NYSE Composite | -1.36 | |
β | Beta against NYSE Composite | -0.15 | |
σ | Overall volatility | 3.94 | |
Ir | Information ratio | -0.36 |
Dua Putra Stock Return Volatility
Dua Putra historical daily return volatility represents how much of Dua Putra stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.9377% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6209% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Dua Putra Volatility
Volatility is a rate at which the price of Dua Putra or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Dua Putra may increase or decrease. In other words, similar to Dua's beta indicator, it measures the risk of Dua Putra and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dua Putra fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize Dua Putra's volatility to invest better
Higher Dua Putra's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Dua Putra Utama stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Dua Putra Utama stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Dua Putra Utama investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Dua Putra's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Dua Putra's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Dua Putra Investment Opportunity
Dua Putra Utama has a volatility of 3.94 and is 6.35 times more volatile than NYSE Composite. 34 percent of all equities and portfolios are less risky than Dua Putra. You can use Dua Putra Utama to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Dua Putra to be traded at 12.35 in 90 days.Good diversification
The correlation between Dua Putra Utama and NYA is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dua Putra Utama and NYA in the same portfolio, assuming nothing else is changed.
Dua Putra Additional Risk Indicators
The analysis of Dua Putra's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Dua Putra's investment and either accepting that risk or mitigating it. Along with some common measures of Dua Putra stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.21) | |||
| Market Risk Adjusted Performance | 9.06 | |||
| Mean Deviation | 3.22 | |||
| Coefficient Of Variation | (289.50) | |||
| Standard Deviation | 3.94 | |||
| Variance | 15.51 | |||
| Information Ratio | (0.36) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Dua Putra Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Dua Putra as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Dua Putra's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Dua Putra's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Dua Putra Utama.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dua Putra Utama. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Complementary Tools for Dua Stock analysis
When running Dua Putra's price analysis, check to measure Dua Putra'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 Dua Putra is operating at the current time. Most of Dua Putra's value examination focuses on studying past and present price action to predict the probability of Dua Putra's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dua Putra's price. Additionally, you may evaluate how the addition of Dua Putra to your portfolios can decrease your overall portfolio volatility.
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