Sekar Laut (Indonesia) Volatility
| SKLT Stock | IDR 196.00 9.00 4.81% |
Sekar Laut appears to be very steady, given 3 months investment horizon. Sekar Laut Tbk owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0452, which indicates the firm had a 0.0452% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Sekar Laut Tbk, which you can use to evaluate the volatility of the company. Please review Sekar Laut's Risk Adjusted Performance of 0.0281, coefficient of variation of 3781.71, and Semi Deviation of 3.93 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Sekar Laut's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Sekar Laut 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 Sekar daily returns, and it is calculated using variance and standard deviation. We also use Sekar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sekar Laut volatility.
Sekar |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sekar Laut at lower prices. For example, an investor can purchase Sekar 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 Sekar Stock
Sekar Laut Market Sensitivity And Downside Risk
Sekar Laut's beta coefficient measures the volatility of Sekar 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 Sekar stock's returns against your selected market. In other words, Sekar Laut's beta of -1.13 provides an investor with an approximation of how much risk Sekar Laut stock can potentially add to one of your existing portfolios. Sekar Laut Tbk 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 Sekar Laut'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 Sekar Laut'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 Sekar Laut Tbk Demand TrendCheck current 90 days Sekar Laut correlation with market (Dow Jones Industrial)Sekar Beta |
Sekar 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 | 7.21 |
It is essential to understand the difference between upside risk (as represented by Sekar Laut's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sekar Laut's daily returns or price. Since the actual investment returns on holding a position in sekar 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 Sekar Laut.
Sekar Laut Tbk Stock Volatility Analysis
Volatility refers to the frequency at which Sekar Laut stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sekar Laut's price changes. Investors will then calculate the volatility of Sekar Laut'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 Sekar Laut's volatility:
Historical Volatility
This type of stock volatility measures Sekar Laut's fluctuations based on previous trends. It's commonly used to predict Sekar Laut'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 Sekar Laut'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 Sekar Laut'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. Sekar Laut Tbk 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.
Sekar Laut Projected Return Density Against Market
Assuming the 90 days trading horizon Sekar Laut Tbk has a beta of -1.1283 . This usually impliesMost 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 Sekar Laut or Food Products 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 Sekar Laut'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 Sekar 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.
Sekar Laut Tbk has an alpha of 0.279, implying that it can generate a 0.28 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sekar Laut 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.Sekar Laut Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Sekar Laut is 2213.26. The daily returns are distributed with a variance of 51.94 and standard deviation of 7.21. The mean deviation of Sekar Laut Tbk is currently at 3.11. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.28 | |
β | Beta against Dow Jones | -1.13 | |
σ | Overall volatility | 7.21 | |
Ir | Information ratio | 0.01 |
Sekar Laut Stock Return Volatility
Sekar Laut historical daily return volatility represents how much of Sekar Laut stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 7.2066% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7253% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sekar Laut Volatility
Volatility is a rate at which the price of Sekar Laut 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 Sekar Laut may increase or decrease. In other words, similar to Sekar's beta indicator, it measures the risk of Sekar Laut and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sekar Laut 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 Sekar Laut Tbk produces and sells crackers, tomato and chili sauces, breads, and ready to use seasonings in Indonesia and internationally. PT Sekar Laut Tbk was founded in 1976 and is headquartered in Surabaya, Indonesia. Sekar Laut operates under Packaged Foods classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 2093 people.
Sekar Laut'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 Sekar Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sekar Laut's price varies over time.
3 ways to utilize Sekar Laut's volatility to invest better
Higher Sekar Laut's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sekar Laut Tbk 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. Sekar Laut Tbk 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 Sekar Laut Tbk investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sekar Laut'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 Sekar Laut's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sekar Laut Investment Opportunity
Sekar Laut Tbk has a volatility of 7.21 and is 9.88 times more volatile than Dow Jones Industrial. 64 percent of all equities and portfolios are less risky than Sekar Laut. You can use Sekar Laut Tbk to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Sekar Laut to be traded at 245.0 in 90 days.Good diversification
The correlation between Sekar Laut Tbk and DJI is -0.12 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sekar Laut Tbk and DJI in the same portfolio, assuming nothing else is changed.
Sekar Laut Additional Risk Indicators
The analysis of Sekar Laut'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 Sekar Laut's investment and either accepting that risk or mitigating it. Along with some common measures of Sekar Laut 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 | 0.0281 | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 2.96 | |||
| Semi Deviation | 3.93 | |||
| Downside Deviation | 4.37 | |||
| Coefficient Of Variation | 3781.71 | |||
| Standard Deviation | 7.09 |
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.
Sekar Laut 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 Sekar Laut 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. Sekar Laut'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, Sekar Laut'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 Sekar Laut Tbk.
Other Information on Investing in Sekar Stock
Sekar Laut financial ratios help investors to determine whether Sekar 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 Sekar with respect to the benefits of owning Sekar Laut security.