Jasa Armada (Indonesia) Volatility
| IPCM Stock | IDR 270.00 2.00 0.74% |
Jasa Armada Indonesia holds Efficiency (Sharpe) Ratio of -0.0743, which attests that the entity had a -0.0743% return per unit of risk over the last 3 months. Jasa Armada Indonesia exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Jasa Armada's Risk Adjusted Performance of (0.07), market risk adjusted performance of (2.37), and Standard Deviation of 0.5477 to validate the risk estimate we provide. Key indicators related to Jasa Armada's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Jasa Armada 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 Jasa daily returns, and it is calculated using variance and standard deviation. We also use Jasa's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Jasa Armada volatility.
Jasa |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Jasa Armada 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 Jasa Armada at lower prices. For example, an investor can purchase Jasa 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 Jasa Armada'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 Jasa Stock
Moving against Jasa Stock
| 0.77 | INKP | Indah Kiat Pulp | PairCorr |
| 0.68 | TKIM | Pabrik Kertas Tjiwi Earnings Call Tomorrow | PairCorr |
| 0.56 | UNTR | United Tractors Tbk | PairCorr |
| 0.49 | MCOL | Prima Andalan Mandiri | PairCorr |
Jasa Armada Market Sensitivity And Downside Risk
Jasa Armada's beta coefficient measures the volatility of Jasa 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 Jasa stock's returns against your selected market. In other words, Jasa Armada's beta of 0.0312 provides an investor with an approximation of how much risk Jasa Armada stock can potentially add to one of your existing portfolios. Jasa Armada Indonesia exhibits very low volatility with skewness of -0.28 and kurtosis of -0.2. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Jasa Armada'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 Jasa Armada'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 Jasa Armada Indonesia Demand TrendCheck current 90 days Jasa Armada correlation with market (NYSE Composite)Jasa Beta |
Jasa 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 | 0.54 |
It is essential to understand the difference between upside risk (as represented by Jasa Armada's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Jasa Armada's daily returns or price. Since the actual investment returns on holding a position in jasa 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 Jasa Armada.
Jasa Armada Indonesia Stock Volatility Analysis
Volatility refers to the frequency at which Jasa Armada stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Jasa Armada's price changes. Investors will then calculate the volatility of Jasa Armada'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 Jasa Armada's volatility:
Historical Volatility
This type of stock volatility measures Jasa Armada's fluctuations based on previous trends. It's commonly used to predict Jasa Armada'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 Jasa Armada'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 Jasa Armada'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. Jasa Armada Indonesia 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.
Jasa Armada Projected Return Density Against Market
Assuming the 90 days trading horizon Jasa Armada has a beta of 0.0312 . This usually indicates as returns on the market go up, Jasa Armada average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Jasa Armada Indonesia will be expected to be much smaller as well.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 Jasa Armada or Transportation Infrastructure 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 Jasa Armada'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 Jasa 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.
Jasa Armada Indonesia 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 Jasa Armada 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.Jasa Armada Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Jasa Armada is -1346.64. The daily returns are distributed with a variance of 0.29 and standard deviation of 0.54. The mean deviation of Jasa Armada Indonesia is currently at 0.36. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.08 | |
β | Beta against NYSE Composite | 0.03 | |
σ | Overall volatility | 0.54 | |
Ir | Information ratio | -0.28 |
Jasa Armada Stock Return Volatility
Jasa Armada historical daily return volatility represents how much of Jasa Armada stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.5391% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6294% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Jasa Armada Volatility
Volatility is a rate at which the price of Jasa Armada 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 Jasa Armada may increase or decrease. In other words, similar to Jasa's beta indicator, it measures the risk of Jasa Armada and helps estimate the fluctuations that may happen in a short period of time. So if prices of Jasa Armada 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 Jasa Armada's volatility to invest better
Higher Jasa Armada's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Jasa Armada Indonesia 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. Jasa Armada Indonesia 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 Jasa Armada Indonesia investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Jasa Armada'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 Jasa Armada's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Jasa Armada Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.63 and is 1.17 times more volatile than Jasa Armada Indonesia. 4 percent of all equities and portfolios are less risky than Jasa Armada. You can use Jasa Armada Indonesia to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Jasa Armada to be traded at 264.6 in 90 days.Significant diversification
The correlation between Jasa Armada Indonesia and NYA is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Jasa Armada Indonesia and NYA in the same portfolio, assuming nothing else is changed.
Jasa Armada Additional Risk Indicators
The analysis of Jasa Armada'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 Jasa Armada's investment and either accepting that risk or mitigating it. Along with some common measures of Jasa Armada 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 | (0.07) | |||
| Market Risk Adjusted Performance | (2.37) | |||
| Mean Deviation | 0.4006 | |||
| Coefficient Of Variation | (850.64) | |||
| Standard Deviation | 0.5477 | |||
| Variance | 0.3 | |||
| Information Ratio | (0.28) |
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.
Jasa Armada 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 Jasa Armada 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. Jasa Armada'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, Jasa Armada'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 Jasa Armada Indonesia.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Jasa Armada Indonesia. 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Complementary Tools for Jasa Stock analysis
When running Jasa Armada's price analysis, check to measure Jasa Armada'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 Jasa Armada is operating at the current time. Most of Jasa Armada's value examination focuses on studying past and present price action to predict the probability of Jasa Armada's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Jasa Armada's price. Additionally, you may evaluate how the addition of Jasa Armada to your portfolios can decrease your overall portfolio volatility.
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