DMS Propertindo (Indonesia) Volatility
| KOTA Stock | 7.00 1.00 12.50% |
DMS Propertindo Tbk secures Sharpe Ratio (or Efficiency) of -0.0177, which denotes the company had a -0.0177 % return per unit of volatility over the last 3 months. DMS Propertindo Tbk exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm DMS Propertindo's Standard Deviation of 7.73, market risk adjusted performance of (0.07), and Mean Deviation of 4.76 to check the risk estimate we provide. Key indicators related to DMS Propertindo's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
DMS Propertindo 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 DMS daily returns, and it is calculated using variance and standard deviation. We also use DMS's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DMS Propertindo volatility.
DMS |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of DMS Propertindo at lower prices. For example, an investor can purchase DMS 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 DMS Stock
DMS Propertindo Market Sensitivity And Downside Risk
DMS Propertindo's beta coefficient measures the volatility of DMS 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 DMS stock's returns against your selected market. In other words, DMS Propertindo's beta of 1.28 provides an investor with an approximation of how much risk DMS Propertindo stock can potentially add to one of your existing portfolios. DMS Propertindo Tbk is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DMS Propertindo'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 DMS Propertindo'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 DMS Propertindo Tbk Demand TrendCheck current 90 days DMS Propertindo correlation with market (Dow Jones Industrial)DMS Beta |
DMS 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 | 7.76 |
It is essential to understand the difference between upside risk (as represented by DMS Propertindo's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of DMS Propertindo's daily returns or price. Since the actual investment returns on holding a position in dms 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 DMS Propertindo.
DMS Propertindo Tbk Stock Volatility Analysis
Volatility refers to the frequency at which DMS Propertindo stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with DMS Propertindo's price changes. Investors will then calculate the volatility of DMS Propertindo'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 DMS Propertindo's volatility:
Historical Volatility
This type of stock volatility measures DMS Propertindo's fluctuations based on previous trends. It's commonly used to predict DMS Propertindo'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 DMS Propertindo'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 DMS Propertindo'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. DMS Propertindo 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.
DMS Propertindo Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.2774 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, DMS Propertindo will likely underperform.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 DMS Propertindo 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 DMS Propertindo'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 DMS 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.
DMS Propertindo Tbk 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 a DMS Propertindo 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.DMS Propertindo Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of DMS Propertindo is -5641.93. The daily returns are distributed with a variance of 60.25 and standard deviation of 7.76. The mean deviation of DMS Propertindo Tbk is currently at 4.71. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | -0.18 | |
β | Beta against Dow Jones | 1.28 | |
σ | Overall volatility | 7.76 | |
Ir | Information ratio | -0.02 |
DMS Propertindo Stock Return Volatility
DMS Propertindo historical daily return volatility represents how much of DMS Propertindo stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 7.7623% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8455% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About DMS Propertindo Volatility
Volatility is a rate at which the price of DMS Propertindo 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 DMS Propertindo may increase or decrease. In other words, similar to DMS's beta indicator, it measures the risk of DMS Propertindo and helps estimate the fluctuations that may happen in a short period of time. So if prices of DMS Propertindo 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 DMS Propertindo's volatility to invest better
Higher DMS Propertindo's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of DMS Propertindo 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. DMS Propertindo 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 DMS Propertindo Tbk investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in DMS Propertindo'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 DMS Propertindo's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
DMS Propertindo Investment Opportunity
DMS Propertindo Tbk has a volatility of 7.76 and is 9.13 times more volatile than Dow Jones Industrial. 69 percent of all equities and portfolios are less risky than DMS Propertindo. You can use DMS Propertindo Tbk to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of DMS Propertindo to be traded at 6.65 in 90 days.Average diversification
The correlation between DMS Propertindo Tbk and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DMS Propertindo Tbk and DJI in the same portfolio, assuming nothing else is changed.
DMS Propertindo Additional Risk Indicators
The analysis of DMS Propertindo'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 DMS Propertindo's investment and either accepting that risk or mitigating it. Along with some common measures of DMS Propertindo 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 | (0.0006) | |||
| Market Risk Adjusted Performance | (0.07) | |||
| Mean Deviation | 4.76 | |||
| Coefficient Of Variation | (8,859) | |||
| Standard Deviation | 7.73 | |||
| Variance | 59.72 | |||
| Information Ratio | (0.02) |
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.
DMS Propertindo 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 DMS Propertindo 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. DMS Propertindo'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, DMS Propertindo'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 DMS Propertindo Tbk.
Other Information on Investing in DMS Stock
DMS Propertindo financial ratios help investors to determine whether DMS 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 DMS with respect to the benefits of owning DMS Propertindo security.