Adira Dinamika (Indonesia) Volatility
| ADMF Stock | IDR 9,650 50.00 0.52% |
Adira Dinamika Multi secures Sharpe Ratio (or Efficiency) of -0.27, which signifies that the company had a -0.27 % return per unit of risk over the last 3 months. Adira Dinamika Multi exposes twenty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Adira Dinamika's Coefficient Of Variation of (418.32), variance of 0.6875, and Risk Adjusted Performance of (0.20) to double-check the risk estimate we provide. Key indicators related to Adira Dinamika's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Adira Dinamika 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 Adira daily returns, and it is calculated using variance and standard deviation. We also use Adira's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Adira Dinamika volatility.
Adira |
Adira Dinamika Multi Stock Volatility Analysis
Volatility refers to the frequency at which Adira Dinamika stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Adira Dinamika's price changes. Investors will then calculate the volatility of Adira Dinamika'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 Adira Dinamika's volatility:
Historical Volatility
This type of stock volatility measures Adira Dinamika's fluctuations based on previous trends. It's commonly used to predict Adira Dinamika'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 Adira Dinamika'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 Adira Dinamika'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. Adira Dinamika Multi 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.
Adira Dinamika Projected Return Density Against Market
Assuming the 90 days trading horizon Adira Dinamika has a beta that is very close to zero . This suggests the returns on DOW JONES INDUSTRIAL and Adira Dinamika do not appear to be very sensitive.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 Adira Dinamika or Consumer Finance 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 Adira Dinamika'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 Adira 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.
It does not look like Adira Dinamika's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives an Adira Dinamika 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.Adira Dinamika Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Adira Dinamika is -368.82. The daily returns are distributed with a variance of 0.72 and standard deviation of 0.85. The mean deviation of Adira Dinamika Multi is currently at 0.61. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 0.85 | |
Ir | Information ratio | -0.28 |
Adira Dinamika Stock Return Volatility
Adira Dinamika historical daily return volatility represents how much of Adira Dinamika stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.8469% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8624% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Adira Dinamika Volatility
Volatility is a rate at which the price of Adira Dinamika 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 Adira Dinamika may increase or decrease. In other words, similar to Adira's beta indicator, it measures the risk of Adira Dinamika and helps estimate the fluctuations that may happen in a short period of time. So if prices of Adira Dinamika 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 Adira Dinamika Multi Finance Tbk provides consumer financing, murabahah financing, and finance leasing services in Indonesia. PT Adira Dinamika Multi Finance Tbk is a subsidiary of PT Bank Danamon Indonesia Tbk. Adira Dinamika operates under Credit Services classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 13752 people.
Adira Dinamika'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 Adira Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Adira Dinamika's price varies over time.
3 ways to utilize Adira Dinamika's volatility to invest better
Higher Adira Dinamika's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Adira Dinamika Multi 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. Adira Dinamika Multi 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 Adira Dinamika Multi investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Adira Dinamika'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 Adira Dinamika's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Adira Dinamika Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.86 and is 1.01 times more volatile than Adira Dinamika Multi. 7 percent of all equities and portfolios are less risky than Adira Dinamika. You can use Adira Dinamika Multi to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Adira Dinamika to be traded at 9457.0 in 90 days.Adira Dinamika Additional Risk Indicators
The analysis of Adira Dinamika'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 Adira Dinamika's investment and either accepting that risk or mitigating it. Along with some common measures of Adira Dinamika 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 | (0.20) | |||
| Mean Deviation | 0.6074 | |||
| Coefficient Of Variation | (418.32) | |||
| Standard Deviation | 0.8292 | |||
| Variance | 0.6875 | |||
| Information Ratio | (0.28) | |||
| Total Risk Alpha | (0.23) |
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.
Adira Dinamika 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 Adira Dinamika 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. Adira Dinamika'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, Adira Dinamika'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 Adira Dinamika Multi.
Other Information on Investing in Adira Stock
Adira Dinamika financial ratios help investors to determine whether Adira 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 Adira with respect to the benefits of owning Adira Dinamika security.