Indonesia Prima (Indonesia) Volatility
| OMRE Stock | IDR 412.00 0.00 0.00% |
As of now, Indonesia Stock is very steady. Indonesia Prima Property holds Efficiency (Sharpe) Ratio of 0.0717, which attests that the entity had a 0.0717% return per unit of risk over the last 3 months. We have found seventeen technical indicators for Indonesia Prima Property, which you can use to evaluate the volatility of the firm. Please check out Indonesia Prima's Market Risk Adjusted Performance of (4.67), risk adjusted performance of 0.0495, and Standard Deviation of 0.6758 to validate if the risk estimate we provide is consistent with the expected return of 0.05%. Key indicators related to Indonesia Prima's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Indonesia Prima 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 Prima volatility.
Indonesia |
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 Prima at lower prices. For example, an investor can purchase Indonesia 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 against Indonesia Stock
| 0.57 | KPIG | Mnc Land Tbk | PairCorr |
| 0.57 | UANG | Pt Pakuan Tbk | PairCorr |
| 0.43 | LFLO | Imago Mulia Persada | PairCorr |
| 0.42 | OKAS | Ancora Indonesia Res | PairCorr |
| 0.34 | BEST | Bekasi Fajar Industrial | PairCorr |
| 0.34 | BSSR | Baramulti Suksessarana | PairCorr |
Indonesia Prima Market Sensitivity And Downside Risk
Indonesia Prima's beta coefficient measures the volatility of Indonesia 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 Indonesia stock's returns against your selected market. In other words, Indonesia Prima's beta of -0.0079 provides an investor with an approximation of how much risk Indonesia Prima stock can potentially add to one of your existing portfolios. Indonesia Prima Property exhibits very low volatility with skewness of 6.15 and kurtosis of 47.08. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Indonesia Prima'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 Indonesia Prima'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 Indonesia Prima Property Demand TrendCheck current 90 days Indonesia Prima correlation with market (Dow Jones Industrial)Indonesia Beta |
Indonesia 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 | 0.7 |
It is essential to understand the difference between upside risk (as represented by Indonesia Prima's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Indonesia Prima's daily returns or price. Since the actual investment returns on holding a position in indonesia 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 Prima.
Indonesia Prima Property Stock Volatility Analysis
Volatility refers to the frequency at which Indonesia Prima stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Indonesia Prima's price changes. Investors will then calculate the volatility of Indonesia Prima'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 Prima's volatility:
Historical Volatility
This type of stock volatility measures Indonesia Prima's fluctuations based on previous trends. It's commonly used to predict Indonesia Prima'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 Prima'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 Indonesia Prima'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. Indonesia Prima Property 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.
Indonesia Prima Projected Return Density Against Market
Assuming the 90 days trading horizon Indonesia Prima Property has a beta of -0.0079 . This indicates as returns on the benchmark increase, returns on holding Indonesia Prima are expected to decrease at a much lower rate. During a bear market, however, Indonesia Prima Property is likely to outperform the market.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 Prima 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 Indonesia Prima'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.
Indonesia Prima Property has an alpha of 0.0379, implying that it can generate a 0.0379 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Indonesia Prima 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.Indonesia Prima Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Indonesia Prima is 1394.55. The daily returns are distributed with a variance of 0.49 and standard deviation of 0.7. The mean deviation of Indonesia Prima Property is currently at 0.2. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | -0.0079 | |
σ | Overall volatility | 0.70 | |
Ir | Information ratio | -0.11 |
Indonesia Prima Stock Return Volatility
Indonesia Prima historical daily return volatility represents how much of Indonesia Prima stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.6975% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Indonesia Prima Volatility
Volatility is a rate at which the price of Indonesia Prima 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 Prima may increase or decrease. In other words, similar to Indonesia's beta indicator, it measures the risk of Indonesia Prima and helps estimate the fluctuations that may happen in a short period of time. So if prices of Indonesia Prima 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 Indonesia Prima Property Tbk, together with its subsidiaries, operates in the property sector in Indonesia. PT Indonesia Prima Property Tbk is a subsidiary of First Pacific Capital Group Limited. Indonesia Prima operates under Real Estate Services classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 364 people.
Indonesia Prima'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 Indonesia Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Indonesia Prima's price varies over time.
3 ways to utilize Indonesia Prima's volatility to invest better
Higher Indonesia Prima's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Indonesia Prima Property 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. Indonesia Prima Property 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 Indonesia Prima Property investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Indonesia Prima'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 Indonesia Prima's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Indonesia Prima Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.73 and is 1.04 times more volatile than Indonesia Prima Property. 6 percent of all equities and portfolios are less risky than Indonesia Prima. You can use Indonesia Prima Property to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Indonesia Prima to be traded at 407.88 in 90 days.Good diversification
The correlation between Indonesia Prima Property and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Indonesia Prima Property and DJI in the same portfolio, assuming nothing else is changed.
Indonesia Prima Additional Risk Indicators
The analysis of Indonesia Prima'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 Prima's investment and either accepting that risk or mitigating it. Along with some common measures of Indonesia Prima 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 | 0.0495 | |||
| Market Risk Adjusted Performance | (4.67) | |||
| Mean Deviation | 0.1915 | |||
| Coefficient Of Variation | 1438.32 | |||
| Standard Deviation | 0.6758 | |||
| Variance | 0.4567 | |||
| Information Ratio | (0.11) |
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.
Indonesia Prima 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 Prima 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 Prima'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 Prima'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 Prima Property.
Other Information on Investing in Indonesia Stock
Indonesia Prima financial ratios help investors to determine whether Indonesia 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 Indonesia with respect to the benefits of owning Indonesia Prima security.