# Indonesia Stock Volatility

INDO | - USA Stock | ## USD 5.89 3.09 110.36% |

Indonesia Energy is dangerous given 3 months investment horizon. Indonesia Energy Corp holds Efficiency (Sharpe) Ratio of 0.0874, which attests that the entity had 0.0874% of return per unit of risk over the last 3 months. Our standpoint towards determining the risk of a stock is to use both market data as well as company specific technical data. We were able to break down twenty-seven different technical indicators, which can help you to evaluate if expected returns of 1.34% are justified by taking the suggested risk. Use Indonesia Energy Corp risk adjusted performance of (0.06), and Market Risk Adjusted Performance of (0.63) to evaluate company specific risk that cannot be diversified away.

## Indonesia Volatility | Indonesia |

Indonesia Energy 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 Indonesia daily returns, and it is calculated using variance and standard deviation. We also use Indonesia's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Indonesia Energy volatility.

### 720 Days Market Risk

### Chance of Distress

### 720 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Indonesia Energy 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 Indonesia Energy at lower prices. For example, an investor can purchase Indonesia 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 Indonesia Energy'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.

## Indonesia Energy Market Sensitivity And Downside Risk

Indonesia Energy's beta coefficient measures the volatility of Indonesia stock compared to the systematic risk of the entire stock 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 Indonesia stock's returns against your selected market. In other words, Indonesia Energy's beta of 0.73 provides an investor with an approximation of how much risk Indonesia Energy stock can potentially add to one of your existing portfolios.

Let's try to break down what Indonesia's beta means in this case. As returns on the market increase, Indonesia Energy returns are expected to increase less than the market. However, during the bear market, the loss on holding Indonesia Energy will be expected to be smaller as well. 3 Months Beta |Analyze Indonesia Energy Corp Demand TrendCheck current 90 days Indonesia Energy correlation with market (DOW)

Indonesia standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.

## Indonesia Beta |

## Standard Deviation | 15.36 |

It is essential to understand the difference between upside risk (as represented by Indonesia Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Indonesia Energy stock's daily returns or price. Since the actual investment returns on holding a position in Indonesia Energy 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 Indonesia Energy.

## Indonesia Energy Corp Stock Volatility Analysis

Volatility refers to the frequency at which Indonesia Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Indonesia Energy's price changes. Investors will then calculate the volatility of Indonesia Energy'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 Indonesia Energy's volatility:### Historical Volatility

This type of stock volatility measures Indonesia Energy's fluctuations based on previous trends. It's commonly used to predict Indonesia Energy'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 Indonesia Energy's current market price. This means that the stock will return to its initially predicted market price.Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. Indonesia Energy Corp 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. View also all equity analysis or get more info about average price price transform indicator.

## Indonesia Energy Projected Return Density Against Market

Given the investment horizon of 90 days Indonesia Energy has a beta of 0.7263 . This usually indicates as returns on the market go up, Indonesia Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Indonesia Energy Corp will be expected to be much smaller as well.

Indonesia Energy's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Indonesia Energy stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point. 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 Indonesia Energy or Energy 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 Indonesia Energy stock'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 Indonesia 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.

The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Indonesia Energy Corp is significantly underperforming DOW. Predicted Return Density |

Returns |

## What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.## Indonesia Energy Stock Risk Measures

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 Indonesia Energy or Energy 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 Indonesia Energy stock'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 Indonesia 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.

Given the investment horizon of 90 days the coefficient of variation of Indonesia Energy is 1144.17. The daily returns are distributed with a variance of 235.83 and standard deviation of 15.36. The mean deviation of Indonesia Energy Corp is currently at 5.77. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83

α | Alpha over DOW | -0.42 | |

β | Beta against DOW | 0.73 | |

σ | Overall volatility | 15.36 | |

Ir | Information ratio | -0.07 |

## Indonesia Energy Stock Return Volatility

Indonesia Energy historical daily return volatility represents how much Indonesia Energy stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 15.3567% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.8429% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About Indonesia Energy Volatility

Volatility is a rate at which the price of Indonesia Energy 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 Indonesia Energy may increase or decrease. In other words, similar to Indonesia's beta indicator, it measures the risk of Indonesia Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Indonesia Energy 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.Last Reported | Projected for 2022 | |

Market Capitalization | 63.5 M | 65.3 M |

## Indonesia Energy Investment Opportunity

Indonesia Energy Corp has a volatility of 15.36 and is 18.29 times more volatile than DOW.

**96**of all equities and portfolios are less risky than Indonesia Energy. Compared to the overall equity markets, volatility of historical daily returns of Indonesia Energy Corp is higher than**96 ()**of all global equities and portfolios over the last 90 days. Use Indonesia Energy Corp to enhance returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Indonesia Energy to be traded at $7.36 in 90 days. . Let's try to break down what Indonesia's beta means in this case. As returns on the market increase, Indonesia Energy returns are expected to increase less than the market. However, during the bear market, the loss on holding Indonesia Energy will be expected to be smaller as well.### Average diversification

The correlation between Indonesia Energy Corp and DJI is

**Average diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Indonesia Energy Corp and DJI in the same portfolio assuming nothing else is changed.## Indonesia Energy Additional Risk Indicators

The analysis of Indonesia Energy'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 Indonesia Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Indonesia Energy stock 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 | (0.06) | |||

Market Risk Adjusted Performance | (0.63) | |||

Mean Deviation | 3.36 | |||

Coefficient Of Variation | (1,301) | |||

Standard Deviation | 5.96 | |||

Variance | 35.52 | |||

Information Ratio | (0.07) |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## Indonesia Energy 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.

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 Indonesia Energy 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. Indonesia Energy'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, Indonesia Energy'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 Indonesia Energy Corp.

Please see Risk vs Return Analysis. Note that the Indonesia Energy Corp information on this page should be used as a complementary analysis to other Indonesia Energy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Indonesia Energy Corp price analysis, check to measure Indonesia Energy'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 Indonesia Energy is operating at the current time. Most of Indonesia Energy's value examination focuses on studying past and present price action to predict the probability of Indonesia Energy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Indonesia Energy's price. Additionally, you may evaluate how the addition of Indonesia Energy to your portfolios can decrease your overall portfolio volatility.

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The market value of Indonesia Energy Corp is measured differently than its book value, which is the value of Indonesia that is recorded on the company's balance sheet. Investors also form their own opinion of Indonesia Energy's value that differs from its market value or its book value, called intrinsic value, which is Indonesia Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Indonesia Energy's market value can be influenced by many factors that don't directly affect Indonesia Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Indonesia Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine Indonesia Energy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Indonesia Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.