Pelayaran Kurnia (Indonesia) Volatility
| KLAS Stock | 107.00 3.00 2.73% |
Pelayaran Kurnia appears to be very steady, given 3 months investment horizon. Pelayaran Kurnia Lautan maintains Sharpe Ratio (i.e., Efficiency) of 0.0323, which implies the firm had a 0.0323% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Pelayaran Kurnia Lautan, which you can use to evaluate the volatility of the company. Please evaluate Pelayaran Kurnia's Coefficient Of Variation of 2419.26, semi deviation of 5.79, and Risk Adjusted Performance of 0.0388 to confirm if our risk estimates are consistent with your expectations.
Pelayaran |
Pelayaran Kurnia 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 Pelayaran daily returns, and it is calculated using variance and standard deviation. We also use Pelayaran's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Pelayaran Kurnia volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Pelayaran Kurnia at lower prices. For example, an investor can purchase Pelayaran stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Pelayaran Kurnia Market Sensitivity And Downside Risk
Pelayaran Kurnia's beta coefficient measures the volatility of Pelayaran 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 Pelayaran stock's returns against your selected market. In other words, Pelayaran Kurnia's beta of -1.27 provides an investor with an approximation of how much risk Pelayaran Kurnia stock can potentially add to one of your existing portfolios. Pelayaran Kurnia Lautan 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 Pelayaran Kurnia'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 Pelayaran Kurnia'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 Pelayaran Kurnia Lautan Demand TrendCheck current 90 days Pelayaran Kurnia correlation with market (Dow Jones Industrial)Pelayaran Beta |
Pelayaran 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 | 6.15 |
It is essential to understand the difference between upside risk (as represented by Pelayaran Kurnia's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Pelayaran Kurnia's daily returns or price. Since the actual investment returns on holding a position in pelayaran 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 Pelayaran Kurnia.
Pelayaran Kurnia Lautan Stock Volatility Analysis
Volatility refers to the frequency at which Pelayaran Kurnia stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Pelayaran Kurnia's price changes. Investors will then calculate the volatility of Pelayaran Kurnia'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 Pelayaran Kurnia's volatility:
Historical Volatility
This type of stock volatility measures Pelayaran Kurnia's fluctuations based on previous trends. It's commonly used to predict Pelayaran Kurnia'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 Pelayaran Kurnia'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 Pelayaran Kurnia'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. Pelayaran Kurnia Lautan 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.
Pelayaran Kurnia Projected Return Density Against Market
Assuming the 90 days trading horizon Pelayaran Kurnia Lautan has a beta of -1.267 . This indicates as returns on its benchmark rise, returns on holding Pelayaran Kurnia Lautan are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Pelayaran Kurnia is expected to outperform its benchmark.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 Pelayaran Kurnia or Pelayaran 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 Pelayaran Kurnia'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 Pelayaran 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.
Pelayaran Kurnia Lautan has an alpha of 0.3114, implying that it can generate a 0.31 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Pelayaran Kurnia 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.Pelayaran Kurnia Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Pelayaran Kurnia is 3097.33. The daily returns are distributed with a variance of 37.76 and standard deviation of 6.15. The mean deviation of Pelayaran Kurnia Lautan is currently at 3.6. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.31 | |
β | Beta against Dow Jones | -1.27 | |
σ | Overall volatility | 6.14 | |
Ir | Information ratio | 0.03 |
Pelayaran Kurnia Stock Return Volatility
Pelayaran Kurnia historical daily return volatility represents how much of Pelayaran Kurnia stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 6.145% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7252% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Pelayaran Kurnia Investment Opportunity
Pelayaran Kurnia Lautan has a volatility of 6.15 and is 8.42 times more volatile than Dow Jones Industrial. 54 percent of all equities and portfolios are less risky than Pelayaran Kurnia. You can use Pelayaran Kurnia Lautan 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 Pelayaran Kurnia to be traded at 102.72 in 90 days.Good diversification
The correlation between Pelayaran Kurnia Lautan and DJI is -0.15 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Kurnia Lautan and DJI in the same portfolio, assuming nothing else is changed.
Pelayaran Kurnia Additional Risk Indicators
The analysis of Pelayaran Kurnia'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 Pelayaran Kurnia's investment and either accepting that risk or mitigating it. Along with some common measures of Pelayaran Kurnia 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 | 0.0388 | |||
| Market Risk Adjusted Performance | (0.18) | |||
| Mean Deviation | 3.49 | |||
| Semi Deviation | 5.79 | |||
| Downside Deviation | 6.81 | |||
| Coefficient Of Variation | 2419.26 | |||
| Standard Deviation | 6.01 |
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.
Pelayaran Kurnia 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 Pelayaran Kurnia 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. Pelayaran Kurnia'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, Pelayaran Kurnia'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 Pelayaran Kurnia Lautan.