Nusatama Berkah (Indonesia) Market Value

Symbol

Nusatama

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Nusatama Berkah's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Nusatama Berkah.

Nusatama Berkah Upside/Downside Indicators

Nusatama Berkah Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Nusatama Berkah's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Nusatama Berkah's standard deviation. In reality, there are many statistical measures that can use Nusatama Berkah historical prices to predict the future Nusatama Berkah's volatility.

Autocorrelation, which is Nusatama Berkah stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Nusatama Berkah's stock expected returns. We can calculate the autocorrelation of Nusatama Berkah returns to help us make a trade decision. For example, suppose you find that Nusatama Berkah has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Nusatama Berkah stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Nusatama Berkah stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Nusatama Berkah stock over time.

When evaluating Nusatama Berkah's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Nusatama Berkah stock have on its future price. Nusatama Berkah autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Nusatama Berkah autocorrelation shows the relationship between Nusatama Berkah stock current value and its past values and can show if there is a momentum factor associated with investing in Nusatama Berkah Tbk.

Nusatama Berkah financial ratios help investors to determine whether Nusatama 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 Nusatama with respect to the benefits of owning Nusatama Berkah security.