Asian Pac (Malaysia) Volatility
| 4057 Stock | 0.10 0.01 5.26% |
Asian Pac Holdings secures Sharpe Ratio (or Efficiency) of -0.033, which signifies that the company had a -0.033% return per unit of risk over the last 3 months. Asian Pac Holdings exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Asian Pac's Standard Deviation of 3.05, mean deviation of 1.47, and Risk Adjusted Performance of (0.02) to double-check the risk estimate we provide. Key indicators related to Asian Pac's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Asian Pac 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 Asian daily returns, and it is calculated using variance and standard deviation. We also use Asian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Asian Pac volatility.
Asian |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Asian Pac at lower prices. For example, an investor can purchase Asian 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.
Moving together with Asian Stock
Moving against Asian Stock
| 0.63 | 4758 | Ancom Berhad Split | PairCorr |
| 0.57 | 4995 | Versatile Creative Bhd | PairCorr |
| 0.5 | 7095 | PIE Industrial Bhd | PairCorr |
| 0.47 | 2259 | Talam Transform Bhd | PairCorr |
| 0.33 | 0075 | Lyc Healthcare Bhd | PairCorr |
Asian Pac Market Sensitivity And Downside Risk
Asian Pac's beta coefficient measures the volatility of Asian 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 Asian stock's returns against your selected market. In other words, Asian Pac's beta of 0.29 provides an investor with an approximation of how much risk Asian Pac stock can potentially add to one of your existing portfolios. Asian Pac Holdings exhibits very low volatility with skewness of -0.1 and kurtosis of 3.34. Asian Pac Holdings is a potential penny stock. Although Asian Pac may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Asian Pac Holdings. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Asian instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Asian Pac Holdings Demand TrendCheck current 90 days Asian Pac correlation with market (Dow Jones Industrial)Asian Beta |
Asian 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 | 3.12 |
It is essential to understand the difference between upside risk (as represented by Asian Pac's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Asian Pac's daily returns or price. Since the actual investment returns on holding a position in asian 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 Asian Pac.
Asian Pac Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Asian Pac stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Asian Pac's price changes. Investors will then calculate the volatility of Asian Pac'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 Asian Pac's volatility:
Historical Volatility
This type of stock volatility measures Asian Pac's fluctuations based on previous trends. It's commonly used to predict Asian Pac'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 Asian Pac'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 Asian Pac'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. Asian Pac Holdings 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.
Asian Pac Projected Return Density Against Market
Assuming the 90 days trading horizon Asian Pac has a beta of 0.2863 . This suggests as returns on the market go up, Asian Pac average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Asian Pac Holdings 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 Asian Pac or Real Estate 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 Asian Pac'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 Asian 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.
Asian Pac Holdings has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an Asian Pac 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.Asian Pac Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Asian Pac is -3032.52. The daily returns are distributed with a variance of 9.75 and standard deviation of 3.12. The mean deviation of Asian Pac Holdings is currently at 1.54. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.11 | |
β | Beta against Dow Jones | 0.29 | |
σ | Overall volatility | 3.12 | |
Ir | Information ratio | -0.04 |
Asian Pac Stock Return Volatility
Asian Pac historical daily return volatility represents how much of Asian Pac stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.122% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8056% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Asian Pac Volatility
Volatility is a rate at which the price of Asian Pac 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 Asian Pac may increase or decrease. In other words, similar to Asian's beta indicator, it measures the risk of Asian Pac and helps estimate the fluctuations that may happen in a short period of time. So if prices of Asian Pac 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 Asian Pac's volatility to invest better
Higher Asian Pac's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Asian Pac Holdings 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. Asian Pac Holdings 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 Asian Pac Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Asian Pac'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 Asian Pac's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Asian Pac Investment Opportunity
Asian Pac Holdings has a volatility of 3.12 and is 3.85 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Asian Pac Holdings is lower than 27 percent of all global equities and portfolios over the last 90 days. You can use Asian Pac Holdings to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Asian Pac to be traded at 0.125 in 90 days.Significant diversification
The correlation between Asian Pac Holdings and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Asian Pac Holdings and DJI in the same portfolio, assuming nothing else is changed.
Asian Pac Additional Risk Indicators
The analysis of Asian Pac'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 Asian Pac's investment and either accepting that risk or mitigating it. Along with some common measures of Asian Pac 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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.37) | |||
| Mean Deviation | 1.47 | |||
| Coefficient Of Variation | (3,103) | |||
| Standard Deviation | 3.05 | |||
| Variance | 9.3 | |||
| Information Ratio | (0.04) |
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.
Asian Pac 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 Asian Pac 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. Asian Pac'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, Asian Pac'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 Asian Pac Holdings.
Other Information on Investing in Asian Stock
Asian Pac financial ratios help investors to determine whether Asian Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Asian with respect to the benefits of owning Asian Pac security.