Pelat Timah (Indonesia) Volatility
| NIKL Stock | IDR 380.00 12.00 3.06% |
Pelat Timah appears to be very steady, given 3 months investment horizon. Pelat Timah Nusantara maintains Sharpe Ratio (i.e., Efficiency) of 0.1, which implies the firm had a 0.1% return per unit of risk over the last 3 months. By analyzing Pelat Timah's technical indicators, you can evaluate if the expected return of 0.75% is justified by implied risk. Please evaluate Pelat Timah's Risk Adjusted Performance of 0.0554, coefficient of variation of 1333.53, and Semi Deviation of 3.69 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Pelat Timah's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Pelat Timah 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 Pelat daily returns, and it is calculated using variance and standard deviation. We also use Pelat's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Pelat Timah volatility.
Pelat |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Pelat Timah 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 Pelat Timah at lower prices. For example, an investor can purchase Pelat 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 Pelat Timah'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 against Pelat Stock
| 0.64 | ALMI | Alumindo Light Metal | PairCorr |
| 0.63 | SRTG | Saratoga Investama Sedaya | PairCorr |
| 0.43 | BAJA | Saranacentral Bajatama | PairCorr |
Pelat Timah Market Sensitivity And Downside Risk
Pelat Timah's beta coefficient measures the volatility of Pelat 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 Pelat stock's returns against your selected market. In other words, Pelat Timah's beta of 0.92 provides an investor with an approximation of how much risk Pelat Timah stock can potentially add to one of your existing portfolios. Pelat Timah Nusantara is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pelat Timah'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 Pelat Timah'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 Pelat Timah Nusantara Demand TrendCheck current 90 days Pelat Timah correlation with market (NYSE Composite)Pelat Beta |
Pelat 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 | 7.48 |
It is essential to understand the difference between upside risk (as represented by Pelat Timah's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Pelat Timah's daily returns or price. Since the actual investment returns on holding a position in pelat 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 Pelat Timah.
Pelat Timah Nusantara Stock Volatility Analysis
Volatility refers to the frequency at which Pelat Timah stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Pelat Timah's price changes. Investors will then calculate the volatility of Pelat Timah'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 Pelat Timah's volatility:
Historical Volatility
This type of stock volatility measures Pelat Timah's fluctuations based on previous trends. It's commonly used to predict Pelat Timah'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 Pelat Timah'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 Pelat Timah's to be redeemed at a future date.Transformation |
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Pelat Timah Projected Return Density Against Market
Assuming the 90 days trading horizon Pelat Timah has a beta of 0.9188 . This indicates Pelat Timah Nusantara market returns are very sensitive to returns on the market. As the market goes up or down, Pelat Timah is expected to follow.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 Pelat Timah or Metals & Mining 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 Pelat Timah'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 Pelat 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.
Pelat Timah Nusantara has an alpha of 0.4419, implying that it can generate a 0.44 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Pelat Timah 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.Pelat Timah Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Pelat Timah is 995.37. The daily returns are distributed with a variance of 55.99 and standard deviation of 7.48. The mean deviation of Pelat Timah Nusantara is currently at 4.43. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.44 | |
β | Beta against NYSE Composite | 0.92 | |
σ | Overall volatility | 7.48 | |
Ir | Information ratio | 0.06 |
Pelat Timah Stock Return Volatility
Pelat Timah historical daily return volatility represents how much of Pelat Timah stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 7.4826% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Pelat Timah Volatility
Volatility is a rate at which the price of Pelat Timah 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 Pelat Timah may increase or decrease. In other words, similar to Pelat's beta indicator, it measures the risk of Pelat Timah and helps estimate the fluctuations that may happen in a short period of time. So if prices of Pelat Timah 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 Pelat Timah's volatility to invest better
Higher Pelat Timah's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Pelat Timah Nusantara 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. Pelat Timah Nusantara 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 Pelat Timah Nusantara investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Pelat Timah'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 Pelat Timah's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Pelat Timah Investment Opportunity
Pelat Timah Nusantara has a volatility of 7.48 and is 12.06 times more volatile than NYSE Composite. 66 percent of all equities and portfolios are less risky than Pelat Timah. You can use Pelat Timah Nusantara to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Pelat Timah to be traded at 364.8 in 90 days.Significant diversification
The correlation between Pelat Timah Nusantara and NYA is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pelat Timah Nusantara and NYA in the same portfolio, assuming nothing else is changed.
Pelat Timah Additional Risk Indicators
The analysis of Pelat Timah'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 Pelat Timah's investment and either accepting that risk or mitigating it. Along with some common measures of Pelat Timah 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 | 0.0554 | |||
| Market Risk Adjusted Performance | 0.5496 | |||
| Mean Deviation | 3.76 | |||
| Semi Deviation | 3.69 | |||
| Downside Deviation | 4.56 | |||
| Coefficient Of Variation | 1333.53 | |||
| Standard Deviation | 6.74 |
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.
Pelat Timah 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 Pelat Timah 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. Pelat Timah'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, Pelat Timah'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 Pelat Timah Nusantara.
Check out Correlation Analysis to better understand how to build diversified portfolios. 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for Pelat Stock analysis
When running Pelat Timah's price analysis, check to measure Pelat Timah'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 Pelat Timah is operating at the current time. Most of Pelat Timah's value examination focuses on studying past and present price action to predict the probability of Pelat Timah's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pelat Timah's price. Additionally, you may evaluate how the addition of Pelat Timah to your portfolios can decrease your overall portfolio volatility.
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