Capital Financial (Indonesia) Volatility
| CASA Stock | IDR 510.00 15.00 2.86% |
As of now, Capital Stock is very steady. Capital Financial secures Sharpe Ratio (or Efficiency) of 0.0246, which signifies that the company had a 0.0246% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Capital Financial Indonesia, which you can use to evaluate the volatility of the firm. Please confirm Capital Financial's Mean Deviation of 1.45, downside deviation of 2.88, and Risk Adjusted Performance of 0.0254 to double-check if the risk estimate we provide is consistent with the expected return of 0.0657%. Key indicators related to Capital Financial's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Capital Financial 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 Capital daily returns, and it is calculated using variance and standard deviation. We also use Capital's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Capital Financial volatility.
Capital |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Capital Financial at lower prices. For example, an investor can purchase Capital 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 together with Capital Stock
Moving against Capital Stock
Capital Financial Market Sensitivity And Downside Risk
Capital Financial's beta coefficient measures the volatility of Capital 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 Capital stock's returns against your selected market. In other words, Capital Financial's beta of -0.0927 provides an investor with an approximation of how much risk Capital Financial stock can potentially add to one of your existing portfolios. Capital Financial Indonesia currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capital Financial'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 Capital Financial'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 Capital Financial Demand TrendCheck current 90 days Capital Financial correlation with market (Dow Jones Industrial)Capital Beta |
Capital 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 | 2.67 |
It is essential to understand the difference between upside risk (as represented by Capital Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Capital Financial's daily returns or price. Since the actual investment returns on holding a position in capital 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 Capital Financial.
Capital Financial Stock Volatility Analysis
Volatility refers to the frequency at which Capital Financial stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Capital Financial's price changes. Investors will then calculate the volatility of Capital Financial'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 Capital Financial's volatility:
Historical Volatility
This type of stock volatility measures Capital Financial's fluctuations based on previous trends. It's commonly used to predict Capital Financial'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 Capital Financial'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 Capital Financial'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. Capital Financial 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.
Capital Financial Projected Return Density Against Market
Assuming the 90 days trading horizon Capital Financial Indonesia has a beta of -0.0927 suggesting as returns on the benchmark increase, returns on holding Capital Financial are expected to decrease at a much lower rate. During a bear market, however, Capital Financial Indonesia 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 Capital Financial or Insurance 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 Capital Financial'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 Capital 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.
Capital Financial Indonesia has an alpha of 0.0622, implying that it can generate a 0.0622 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Capital Financial 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.Capital Financial Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Capital Financial is 4070.76. The daily returns are distributed with a variance of 7.14 and standard deviation of 2.67. The mean deviation of Capital Financial Indonesia is currently at 1.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | -0.09 | |
σ | Overall volatility | 2.67 | |
Ir | Information ratio | -0.02 |
Capital Financial Stock Return Volatility
Capital Financial historical daily return volatility represents how much of Capital Financial stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.6727% 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 Capital Financial Volatility
Volatility is a rate at which the price of Capital Financial 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 Capital Financial may increase or decrease. In other words, similar to Capital's beta indicator, it measures the risk of Capital Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Capital Financial 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 Capital Financial Indonesia Tbk, together with its subsidiaries, engages in financial services and investment business in Indonesia. PT Capital Financial Indonesia Tbk is a subsidiary of PT Capital Strategic Invesco. Capital Financial operates under Asset Management classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 98 people.
Capital Financial'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 Capital Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Capital Financial's price varies over time.
3 ways to utilize Capital Financial's volatility to invest better
Higher Capital Financial's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Capital Financial 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. Capital Financial 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 Capital Financial investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Capital Financial'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 Capital Financial's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Capital Financial Investment Opportunity
Capital Financial Indonesia has a volatility of 2.67 and is 3.47 times more volatile than Dow Jones Industrial. 23 percent of all equities and portfolios are less risky than Capital Financial. You can use Capital Financial Indonesia 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 Capital Financial to be traded at 489.6 in 90 days.Good diversification
The correlation between Capital Financial Indonesia and DJI is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Financial Indonesia and DJI in the same portfolio, assuming nothing else is changed.
Capital Financial Additional Risk Indicators
The analysis of Capital Financial'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 Capital Financial's investment and either accepting that risk or mitigating it. Along with some common measures of Capital Financial 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 | 0.0254 | |||
| Market Risk Adjusted Performance | (0.56) | |||
| Mean Deviation | 1.45 | |||
| Semi Deviation | 2.12 | |||
| Downside Deviation | 2.88 | |||
| Coefficient Of Variation | 4172.05 | |||
| Standard Deviation | 2.63 |
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.
Capital Financial 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 Capital Financial 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. Capital Financial'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, Capital Financial'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 Capital Financial Indonesia.
Other Information on Investing in Capital Stock
Capital Financial financial ratios help investors to determine whether Capital 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 Capital with respect to the benefits of owning Capital Financial security.