Adhi Commuter (Indonesia) Volatility
| ADCP Stock | 50.00 0.00 0.00% |
As of now, Adhi Stock is very steady. Adhi Commuter Properti secures Sharpe Ratio (or Efficiency) of 0.0043, which signifies that the company had a 0.0043% return per unit of standard deviation over the last 3 months. We have found twenty-four technical indicators for Adhi Commuter Properti, which you can use to evaluate the volatility of the firm. Please confirm Adhi Commuter's risk adjusted performance of 0.0051, and Mean Deviation of 0.4234 to double-check if the risk estimate we provide is consistent with the expected return of 0.0037%. Key indicators related to Adhi Commuter's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Adhi Commuter 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 Adhi daily returns, and it is calculated using variance and standard deviation. We also use Adhi's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Adhi Commuter volatility.
Adhi |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Adhi Commuter at lower prices. For example, an investor can purchase Adhi 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 Adhi Stock
| 0.56 | MFIN | Mandala Multifinance Tbk Split | PairCorr |
| 0.53 | MFMI | Multifiling Mitra | PairCorr |
| 0.47 | BUMI | Bumi Resources Tbk | PairCorr |
| 0.42 | OLIV | Oscar Mitra Sukses | PairCorr |
| 0.41 | MMLP | Mega Manunggal Property | PairCorr |
| 0.39 | SMDM | Suryamas Dutamakmur Tbk | PairCorr |
| 0.39 | INDF | PT Indofood Sukses | PairCorr |
| 0.39 | IFII | Indonesia Fibreboard | PairCorr |
Adhi Commuter Market Sensitivity And Downside Risk
Adhi Commuter's beta coefficient measures the volatility of Adhi 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 Adhi stock's returns against your selected market. In other words, Adhi Commuter's beta of -0.012 provides an investor with an approximation of how much risk Adhi Commuter stock can potentially add to one of your existing portfolios. Adhi Commuter Properti currently demonstrates below-average downside deviation. It has Information Ratio of -0.13 and Jensen Alpha of 0.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Adhi Commuter'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 Adhi Commuter'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 Adhi Commuter Properti Demand TrendCheck current 90 days Adhi Commuter correlation with market (Dow Jones Industrial)Adhi Beta |
Adhi 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 | 0.87 |
It is essential to understand the difference between upside risk (as represented by Adhi Commuter's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Adhi Commuter's daily returns or price. Since the actual investment returns on holding a position in adhi 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 Adhi Commuter.
Adhi Commuter Properti Stock Volatility Analysis
Volatility refers to the frequency at which Adhi Commuter stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Adhi Commuter's price changes. Investors will then calculate the volatility of Adhi Commuter'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 Adhi Commuter's volatility:
Historical Volatility
This type of stock volatility measures Adhi Commuter's fluctuations based on previous trends. It's commonly used to predict Adhi Commuter'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 Adhi Commuter'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 Adhi Commuter'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. Adhi Commuter Properti 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.
Adhi Commuter Projected Return Density Against Market
Assuming the 90 days trading horizon Adhi Commuter Properti has a beta of -0.012 . This suggests as returns on the benchmark increase, returns on holding Adhi Commuter are expected to decrease at a much lower rate. During a bear market, however, Adhi Commuter Properti 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 Adhi Commuter 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 Adhi Commuter'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 Adhi 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.
Adhi Commuter Properti 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 an Adhi Commuter 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.Adhi Commuter Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Adhi Commuter is 23338.24. The daily returns are distributed with a variance of 0.76 and standard deviation of 0.87. The mean deviation of Adhi Commuter Properti is currently at 0.38. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.0045 | |
β | Beta against Dow Jones | -0.01 | |
σ | Overall volatility | 0.87 | |
Ir | Information ratio | -0.13 |
Adhi Commuter Stock Return Volatility
Adhi Commuter historical daily return volatility represents how much of Adhi Commuter stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.8713% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7717% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Adhi Commuter Volatility
Volatility is a rate at which the price of Adhi Commuter 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 Adhi Commuter may increase or decrease. In other words, similar to Adhi's beta indicator, it measures the risk of Adhi Commuter and helps estimate the fluctuations that may happen in a short period of time. So if prices of Adhi Commuter 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 Adhi Commuter's volatility to invest better
Higher Adhi Commuter's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Adhi Commuter Properti 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. Adhi Commuter Properti 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 Adhi Commuter Properti investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Adhi Commuter'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 Adhi Commuter's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Adhi Commuter Investment Opportunity
Adhi Commuter Properti has a volatility of 0.87 and is 1.13 times more volatile than Dow Jones Industrial. 7 percent of all equities and portfolios are less risky than Adhi Commuter. You can use Adhi Commuter Properti 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 Adhi Commuter to be traded at 49.5 in 90 days.Good diversification
The correlation between Adhi Commuter Properti 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 Adhi Commuter Properti and DJI in the same portfolio, assuming nothing else is changed.
Adhi Commuter Additional Risk Indicators
The analysis of Adhi Commuter'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 Adhi Commuter's investment and either accepting that risk or mitigating it. Along with some common measures of Adhi Commuter 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 | 0.0051 | |||
| Market Risk Adjusted Performance | 0.4967 | |||
| Mean Deviation | 0.4234 | |||
| Semi Deviation | 0.6781 | |||
| Downside Deviation | 2.12 | |||
| Coefficient Of Variation | 22098.25 | |||
| Standard Deviation | 0.9191 |
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.
Adhi Commuter 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 Adhi Commuter 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. Adhi Commuter'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, Adhi Commuter'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 Adhi Commuter Properti.
Other Information on Investing in Adhi Stock
Adhi Commuter financial ratios help investors to determine whether Adhi 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 Adhi with respect to the benefits of owning Adhi Commuter security.