DCI Indonesia (Indonesia) Volatility
DCI Indonesia appears to be very steady, given 3 months investment horizon. DCI Indonesia Tbk secures Sharpe Ratio (or Efficiency) of 0.0627, which denotes the company had a 0.0627% return per unit of return volatility over the last 3 months. We have found twenty-one technical indicators for DCI Indonesia Tbk, which you can use to evaluate the volatility of the entity. Please utilize DCI Indonesia's downside deviation of 2.77, and Mean Deviation of 2.16 to check if our risk estimates are consistent with your expectations.
DCI |
DCI Indonesia 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 DCI daily returns, and it is calculated using variance and standard deviation. We also use DCI's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DCI Indonesia volatility.
DCI Indonesia Tbk Stock Volatility Analysis
Volatility refers to the frequency at which DCI Indonesia stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with DCI Indonesia's price changes. Investors will then calculate the volatility of DCI Indonesia'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 DCI Indonesia's volatility:
Historical Volatility
This type of stock volatility measures DCI Indonesia's fluctuations based on previous trends. It's commonly used to predict DCI Indonesia'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 DCI Indonesia'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 DCI Indonesia's to be redeemed at a future date.Transformation |
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DCI Indonesia Projected Return Density Against Market
Assuming the 90 days trading horizon DCI Indonesia Tbk has a beta of -1.0369 suggestingMost 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 DCI Indonesia or Technology 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 DCI Indonesia'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 DCI 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.
DCI Indonesia Tbk has an alpha of 0.3681, implying that it can generate a 0.37 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a DCI Indonesia 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.DCI Indonesia Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of DCI Indonesia is 1593.99. The daily returns are distributed with a variance of 16.53 and standard deviation of 4.07. The mean deviation of DCI Indonesia Tbk is currently at 2.16. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.37 | |
β | Beta against Dow Jones | -1.04 | |
σ | Overall volatility | 4.07 | |
Ir | Information ratio | 0.03 |
DCI Indonesia Stock Return Volatility
DCI Indonesia historical daily return volatility represents how much of DCI Indonesia stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 4.0654% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
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DCI Indonesia Investment Opportunity
DCI Indonesia Tbk has a volatility of 4.07 and is 5.22 times more volatile than Dow Jones Industrial. 36 percent of all equities and portfolios are less risky than DCI Indonesia. You can use DCI Indonesia Tbk to enhance the returns of your portfolios. The stock experiences a normal downward trend and little activity. Check odds of DCI Indonesia to be traded at 44327.25 in 90 days.Good diversification
The correlation between DCI Indonesia Tbk and DJI is -0.2 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DCI Indonesia Tbk and DJI in the same portfolio, assuming nothing else is changed.
DCI Indonesia Additional Risk Indicators
The analysis of DCI Indonesia'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 DCI Indonesia's investment and either accepting that risk or mitigating it. Along with some common measures of DCI Indonesia 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 | 0.0561 | |||
| Market Risk Adjusted Performance | (0.23) | |||
| Mean Deviation | 2.16 | |||
| Semi Deviation | 2.17 | |||
| Downside Deviation | 2.77 | |||
| Coefficient Of Variation | 1593.99 | |||
| Standard Deviation | 4.07 |
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.
DCI Indonesia 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 DCI Indonesia 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. DCI Indonesia'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, DCI Indonesia'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 DCI Indonesia Tbk.
Other Information on Investing in DCI Stock
DCI Indonesia financial ratios help investors to determine whether DCI 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 DCI with respect to the benefits of owning DCI Indonesia security.