Star Media (Malaysia) Volatility
| 6084 Stock | 0.41 0.01 2.38% |
Star Media Group owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0599, which indicates the firm had a -0.0599% return per unit of risk over the last 3 months. Star Media Group exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Star Media's Coefficient Of Variation of (20,365), risk adjusted performance of 0.0029, and Variance of 5.19 to confirm the risk estimate we provide. Key indicators related to Star Media's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Star Media 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 Star daily returns, and it is calculated using variance and standard deviation. We also use Star's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Star Media volatility.
Star |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Star Media at lower prices. For example, an investor can purchase Star 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 Star Stock
| 0.56 | 5168 | Hartalega Holdings Bhd | PairCorr |
| 0.42 | 1899 | Batu Kawan Bhd | PairCorr |
| 0.38 | 5285 | Sime Darby Plantation | PairCorr |
Star Media Market Sensitivity And Downside Risk
Star Media's beta coefficient measures the volatility of Star 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 Star stock's returns against your selected market. In other words, Star Media's beta of 0.32 provides an investor with an approximation of how much risk Star Media stock can potentially add to one of your existing portfolios. Star Media Group exhibits very low volatility with skewness of 0.74 and kurtosis of 0.88. Star Media Group is a potential penny stock. Although Star Media 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 Star Media Group. 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 Star 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 Star Media Group Demand TrendCheck current 90 days Star Media correlation with market (Dow Jones Industrial)Star Beta |
Star 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 | 2.1 |
It is essential to understand the difference between upside risk (as represented by Star Media's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Star Media's daily returns or price. Since the actual investment returns on holding a position in star 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 Star Media.
Star Media Group Stock Volatility Analysis
Volatility refers to the frequency at which Star Media stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Star Media's price changes. Investors will then calculate the volatility of Star Media'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 Star Media's volatility:
Historical Volatility
This type of stock volatility measures Star Media's fluctuations based on previous trends. It's commonly used to predict Star Media'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 Star Media'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 Star Media'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. Star Media Group 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.
Star Media Projected Return Density Against Market
Assuming the 90 days trading horizon Star Media has a beta of 0.3219 . This suggests as returns on the market go up, Star Media average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Star Media Group 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 Star Media or Media & Publishing 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 Star Media'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 Star 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.
Star Media Group 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 a Star Media 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.Star Media Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Star Media is -1669.96. The daily returns are distributed with a variance of 4.43 and standard deviation of 2.1. The mean deviation of Star Media Group is currently at 1.46. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.05 | |
β | Beta against Dow Jones | 0.32 | |
σ | Overall volatility | 2.10 | |
Ir | Information ratio | -0.05 |
Star Media Stock Return Volatility
Star Media historical daily return volatility represents how much of Star Media stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.1039% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Star Media Volatility
Volatility is a rate at which the price of Star Media 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 Star Media may increase or decrease. In other words, similar to Star's beta indicator, it measures the risk of Star Media and helps estimate the fluctuations that may happen in a short period of time. So if prices of Star Media 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 Star Media's volatility to invest better
Higher Star Media's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Star Media Group 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. Star Media Group 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 Star Media Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Star Media'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 Star Media's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Star Media Investment Opportunity
Star Media Group has a volatility of 2.1 and is 2.73 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Star Media Group is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use Star Media Group to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Star Media to be traded at 0.3936 in 90 days.Average diversification
The correlation between Star Media Group and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Star Media Group and DJI in the same portfolio, assuming nothing else is changed.
Star Media Additional Risk Indicators
The analysis of Star Media'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 Star Media's investment and either accepting that risk or mitigating it. Along with some common measures of Star Media 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 | 0.0029 | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 1.53 | |||
| Coefficient Of Variation | (20,365) | |||
| Standard Deviation | 2.28 | |||
| Variance | 5.19 | |||
| Information Ratio | (0.05) |
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.
Star Media 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 Star Media 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. Star Media'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, Star Media'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 Star Media Group.
Other Information on Investing in Star Stock
Star Media financial ratios help investors to determine whether Star 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 Star with respect to the benefits of owning Star Media security.