Indah Prakasa (Indonesia) Volatility
| INPS Stock | IDR 162.00 8.00 4.71% |
Indah Prakasa appears to be very steady, given 3 months investment horizon. Indah Prakasa Sentosa holds Efficiency (Sharpe) Ratio of 0.0924, which attests that the entity had a 0.0924% return per unit of risk over the last 3 months. By evaluating Indah Prakasa's technical indicators, you can evaluate if the expected return of 0.79% is justified by implied risk. Please utilize Indah Prakasa's Downside Deviation of 5.01, risk adjusted performance of 0.0762, and Market Risk Adjusted Performance of 0.8037 to validate if our risk estimates are consistent with your expectations. Key indicators related to Indah Prakasa's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Indah Prakasa 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 Indah daily returns, and it is calculated using variance and standard deviation. We also use Indah's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Indah Prakasa volatility.
Indah |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Indah Prakasa at lower prices. For example, an investor can purchase Indah 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 Indah Stock
Moving against Indah Stock
| 0.59 | ITMA | Sumber Energi Andalan | PairCorr |
| 0.51 | BSBK | Wulandari Bangun Laksana | PairCorr |
| 0.49 | URBN | Urban Jakarta Propertindo | PairCorr |
| 0.35 | MDRN | Modern Internasional Tbk | PairCorr |
Indah Prakasa Market Sensitivity And Downside Risk
Indah Prakasa's beta coefficient measures the volatility of Indah 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 Indah stock's returns against your selected market. In other words, Indah Prakasa's beta of 0.97 provides an investor with an approximation of how much risk Indah Prakasa stock can potentially add to one of your existing portfolios. Indah Prakasa Sentosa 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 Indah Prakasa'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 Indah Prakasa'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 Indah Prakasa Sentosa Demand TrendCheck current 90 days Indah Prakasa correlation with market (Dow Jones Industrial)Indah Beta |
Indah 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 | 8.56 |
It is essential to understand the difference between upside risk (as represented by Indah Prakasa's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Indah Prakasa's daily returns or price. Since the actual investment returns on holding a position in indah 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 Indah Prakasa.
Indah Prakasa Sentosa Stock Volatility Analysis
Volatility refers to the frequency at which Indah Prakasa stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Indah Prakasa's price changes. Investors will then calculate the volatility of Indah Prakasa'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 Indah Prakasa's volatility:
Historical Volatility
This type of stock volatility measures Indah Prakasa's fluctuations based on previous trends. It's commonly used to predict Indah Prakasa'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 Indah Prakasa'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 Indah Prakasa'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. Indah Prakasa Sentosa 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.
Indah Prakasa Projected Return Density Against Market
Assuming the 90 days trading horizon Indah Prakasa has a beta of 0.9688 . This usually indicates Indah Prakasa Sentosa market returns are very sensitive to returns on the market. As the market goes up or down, Indah Prakasa 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 Indah Prakasa or Air Freight & Logistics 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 Indah Prakasa'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 Indah 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.
Indah Prakasa Sentosa has an alpha of 0.6817, implying that it can generate a 0.68 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Indah Prakasa 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.Indah Prakasa Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Indah Prakasa is 1082.76. The daily returns are distributed with a variance of 73.2 and standard deviation of 8.56. The mean deviation of Indah Prakasa Sentosa is currently at 5.34. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.68 | |
β | Beta against Dow Jones | 0.97 | |
σ | Overall volatility | 8.56 | |
Ir | Information ratio | 0.08 |
Indah Prakasa Stock Return Volatility
Indah Prakasa historical daily return volatility represents how much of Indah Prakasa stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 8.5555% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Indah Prakasa Volatility
Volatility is a rate at which the price of Indah Prakasa 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 Indah Prakasa may increase or decrease. In other words, similar to Indah's beta indicator, it measures the risk of Indah Prakasa and helps estimate the fluctuations that may happen in a short period of time. So if prices of Indah Prakasa 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.PT Indah Prakasa Sentosa Tbk. engages in integrated logistics, transportation, distribution, and retail business in fuel, lubricant, chemical, gasses, and FMCG in Indonesia. PT Indah Prakasa Sentosa Tbk. was founded in 1960 and is headquartered in Jakarta, Indonesia. Indah Prakasa operates under Trucking classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 193 people.
Indah Prakasa's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Indah Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Indah Prakasa's price varies over time.
3 ways to utilize Indah Prakasa's volatility to invest better
Higher Indah Prakasa's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Indah Prakasa Sentosa 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. Indah Prakasa Sentosa 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 Indah Prakasa Sentosa investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Indah Prakasa'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 Indah Prakasa's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Indah Prakasa Investment Opportunity
Indah Prakasa Sentosa has a volatility of 8.56 and is 11.73 times more volatile than Dow Jones Industrial. 76 percent of all equities and portfolios are less risky than Indah Prakasa. You can use Indah Prakasa Sentosa to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Indah Prakasa to be traded at 153.9 in 90 days.Significant diversification
The correlation between Indah Prakasa Sentosa and DJI 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 Indah Prakasa Sentosa and DJI in the same portfolio, assuming nothing else is changed.
Indah Prakasa Additional Risk Indicators
The analysis of Indah Prakasa'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 Indah Prakasa's investment and either accepting that risk or mitigating it. Along with some common measures of Indah Prakasa 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 | 0.0762 | |||
| Market Risk Adjusted Performance | 0.8037 | |||
| Mean Deviation | 5.19 | |||
| Semi Deviation | 4.3 | |||
| Downside Deviation | 5.01 | |||
| Coefficient Of Variation | 1081.39 | |||
| Standard Deviation | 8.42 |
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.
Indah Prakasa 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 Indah Prakasa 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. Indah Prakasa'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, Indah Prakasa'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 Indah Prakasa Sentosa.
Other Information on Investing in Indah Stock
Indah Prakasa financial ratios help investors to determine whether Indah 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 Indah with respect to the benefits of owning Indah Prakasa security.