Indointernet Tbk (Indonesia) Volatility

EDGE Stock  IDR 3,940  70.00  1.75%   
As of now, Indointernet Stock is very steady. Indointernet Tbk holds Efficiency (Sharpe) Ratio of 0.0235, which attests that the entity had a 0.0235% return per unit of risk over the last 3 months. We have found thirty technical indicators for Indointernet Tbk, which you can use to evaluate the volatility of the firm. Please check out Indointernet Tbk's Downside Deviation of 1.96, risk adjusted performance of 0.0283, and Market Risk Adjusted Performance of 0.1724 to validate if the risk estimate we provide is consistent with the expected return of 0.0905%. Key indicators related to Indointernet Tbk's volatility include:
360 Days Market Risk
Chance Of Distress
360 Days Economic Sensitivity
Indointernet Tbk 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 Indointernet daily returns, and it is calculated using variance and standard deviation. We also use Indointernet's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Indointernet Tbk volatility.
  
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Indointernet Tbk at lower prices. For example, an investor can purchase Indointernet 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 Indointernet Stock

  0.39BYAN Bayan Resources TbkPairCorr

Indointernet Tbk Market Sensitivity And Downside Risk

Indointernet Tbk's beta coefficient measures the volatility of Indointernet 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 Indointernet stock's returns against your selected market. In other words, Indointernet Tbk's beta of 0.56 provides an investor with an approximation of how much risk Indointernet Tbk stock can potentially add to one of your existing portfolios. Indointernet Tbk PT has relatively low volatility with skewness of 4.49 and kurtosis of 28.88. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Indointernet Tbk'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 Indointernet Tbk'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 Indointernet Tbk Demand Trend
Check current 90 days Indointernet Tbk correlation with market (Dow Jones Industrial)

Indointernet Beta

    
  0.56  
Indointernet 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

    
  3.85  
It is essential to understand the difference between upside risk (as represented by Indointernet Tbk's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Indointernet Tbk's daily returns or price. Since the actual investment returns on holding a position in indointernet 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 Indointernet Tbk.

Indointernet Tbk Stock Volatility Analysis

Volatility refers to the frequency at which Indointernet Tbk stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Indointernet Tbk's price changes. Investors will then calculate the volatility of Indointernet Tbk'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 Indointernet Tbk's volatility:

Historical Volatility

This type of stock volatility measures Indointernet Tbk's fluctuations based on previous trends. It's commonly used to predict Indointernet Tbk'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 Indointernet Tbk'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 Indointernet Tbk'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. Indointernet Tbk 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.

Indointernet Tbk Projected Return Density Against Market

Assuming the 90 days trading horizon Indointernet Tbk has a beta of 0.5642 suggesting as returns on the market go up, Indointernet Tbk average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Indointernet Tbk PT 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 Indointernet Tbk 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 Indointernet Tbk'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 Indointernet 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.
Indointernet Tbk PT has an alpha of 0.0434, implying that it can generate a 0.0434 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Indointernet Tbk's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how indointernet stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Indointernet Tbk 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.

Indointernet Tbk Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Indointernet Tbk is 4255.49. The daily returns are distributed with a variance of 14.82 and standard deviation of 3.85. The mean deviation of Indointernet Tbk PT is currently at 1.9. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α
Alpha over Dow Jones
0.04
β
Beta against Dow Jones0.56
σ
Overall volatility
3.85
Ir
Information ratio 0

Indointernet Tbk Stock Return Volatility

Indointernet Tbk historical daily return volatility represents how much of Indointernet Tbk stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.8497% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7668% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Indointernet Tbk Volatility

Volatility is a rate at which the price of Indointernet Tbk 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 Indointernet Tbk may increase or decrease. In other words, similar to Indointernet's beta indicator, it measures the risk of Indointernet Tbk and helps estimate the fluctuations that may happen in a short period of time. So if prices of Indointernet Tbk 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 Indointernet Tbk. provides information and communication technology services and solutions in Indonesia. The company was founded in 1994 and is based in Tangerang Selatan, Indonesia. Indointernet Tbk operates under Information Technology Services classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 222 people.
Indointernet Tbk'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 Indointernet Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Indointernet Tbk's price varies over time.

3 ways to utilize Indointernet Tbk's volatility to invest better

Higher Indointernet Tbk's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Indointernet Tbk 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. Indointernet Tbk 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 Indointernet Tbk investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Indointernet Tbk'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 Indointernet Tbk's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Indointernet Tbk Investment Opportunity

Indointernet Tbk PT has a volatility of 3.85 and is 5.0 times more volatile than Dow Jones Industrial. 34 percent of all equities and portfolios are less risky than Indointernet Tbk. You can use Indointernet Tbk PT to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Indointernet Tbk to be traded at 3821.8 in 90 days.

Average diversification

The correlation between Indointernet Tbk PT 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 Indointernet Tbk PT and DJI in the same portfolio, assuming nothing else is changed.

Indointernet Tbk Additional Risk Indicators

The analysis of Indointernet Tbk'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 Indointernet Tbk's investment and either accepting that risk or mitigating it. Along with some common measures of Indointernet Tbk 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.
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.

Indointernet Tbk 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 Indointernet Tbk 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. Indointernet Tbk'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, Indointernet Tbk'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 Indointernet Tbk PT.

Other Information on Investing in Indointernet Stock

Indointernet Tbk financial ratios help investors to determine whether Indointernet 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 Indointernet with respect to the benefits of owning Indointernet Tbk security.