Tembaga Mulia (Indonesia) Volatility
| TBMS Stock | IDR 930.00 5.00 0.53% |
As of now, Tembaga Stock is very steady. Tembaga Mulia Semanan owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0463, which indicates the firm had a 0.0463% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Tembaga Mulia Semanan, which you can use to evaluate the volatility of the company. Please validate Tembaga Mulia's Coefficient Of Variation of 5535.62, semi deviation of 1.66, and Risk Adjusted Performance of 0.0204 to confirm if the risk estimate we provide is consistent with the expected return of 0.1%. Key indicators related to Tembaga Mulia's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Tembaga Mulia 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 Tembaga daily returns, and it is calculated using variance and standard deviation. We also use Tembaga's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Tembaga Mulia volatility.
Tembaga |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Tembaga Mulia at lower prices. For example, an investor can purchase Tembaga 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 Tembaga Stock
Moving against Tembaga Stock
Tembaga Mulia Market Sensitivity And Downside Risk
Tembaga Mulia's beta coefficient measures the volatility of Tembaga 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 Tembaga stock's returns against your selected market. In other words, Tembaga Mulia's beta of -0.0586 provides an investor with an approximation of how much risk Tembaga Mulia stock can potentially add to one of your existing portfolios. Tembaga Mulia Semanan currently demonstrates below-average downside deviation. It has Information Ratio of -0.04 and Jensen Alpha of 0.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tembaga Mulia'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 Tembaga Mulia'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 Tembaga Mulia Semanan Demand TrendCheck current 90 days Tembaga Mulia correlation with market (Dow Jones Industrial)Tembaga Beta |
Tembaga 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 | 2.2 |
It is essential to understand the difference between upside risk (as represented by Tembaga Mulia's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Tembaga Mulia's daily returns or price. Since the actual investment returns on holding a position in tembaga 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 Tembaga Mulia.
Tembaga Mulia Semanan Stock Volatility Analysis
Volatility refers to the frequency at which Tembaga Mulia stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Tembaga Mulia's price changes. Investors will then calculate the volatility of Tembaga Mulia'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 Tembaga Mulia's volatility:
Historical Volatility
This type of stock volatility measures Tembaga Mulia's fluctuations based on previous trends. It's commonly used to predict Tembaga Mulia'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 Tembaga Mulia'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 Tembaga Mulia'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. Tembaga Mulia Semanan 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.
Tembaga Mulia Projected Return Density Against Market
Assuming the 90 days trading horizon Tembaga Mulia Semanan has a beta of -0.0586 . This usually implies as returns on the benchmark increase, returns on holding Tembaga Mulia are expected to decrease at a much lower rate. During a bear market, however, Tembaga Mulia Semanan 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 Tembaga Mulia or Electrical Equipment 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 Tembaga Mulia'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 Tembaga 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.
Tembaga Mulia Semanan has an alpha of 0.0372, implying that it can generate a 0.0372 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Tembaga Mulia 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.Tembaga Mulia Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Tembaga Mulia is 2157.72. The daily returns are distributed with a variance of 4.85 and standard deviation of 2.2. The mean deviation of Tembaga Mulia Semanan is currently at 1.27. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | -0.06 | |
σ | Overall volatility | 2.20 | |
Ir | Information ratio | -0.04 |
Tembaga Mulia Stock Return Volatility
Tembaga Mulia historical daily return volatility represents how much of Tembaga Mulia stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.2033% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Tembaga Mulia Volatility
Volatility is a rate at which the price of Tembaga Mulia 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 Tembaga Mulia may increase or decrease. In other words, similar to Tembaga's beta indicator, it measures the risk of Tembaga Mulia and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tembaga Mulia 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 Tembaga Mulia Semanan Tbk manufactures, sells, and exports copper and aluminum rods and wires in Indonesia and internationally. The company was incorporated in 1977 and is based in Jakarta Barat, Indonesia. Tembaga Mulia operates under Metal Fabrication classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 296 people.
Tembaga Mulia'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 Tembaga Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Tembaga Mulia's price varies over time.
3 ways to utilize Tembaga Mulia's volatility to invest better
Higher Tembaga Mulia's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Tembaga Mulia Semanan 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. Tembaga Mulia Semanan 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 Tembaga Mulia Semanan investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Tembaga Mulia'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 Tembaga Mulia's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Tembaga Mulia Investment Opportunity
Tembaga Mulia Semanan has a volatility of 2.2 and is 2.82 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than Tembaga Mulia. You can use Tembaga Mulia Semanan 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 Tembaga Mulia to be traded at 911.4 in 90 days.Good diversification
The correlation between Tembaga Mulia Semanan and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Tembaga Mulia Semanan and DJI in the same portfolio, assuming nothing else is changed.
Tembaga Mulia Additional Risk Indicators
The analysis of Tembaga Mulia'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 Tembaga Mulia's investment and either accepting that risk or mitigating it. Along with some common measures of Tembaga Mulia 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 | 0.0204 | |||
| Market Risk Adjusted Performance | (0.51) | |||
| Mean Deviation | 1.29 | |||
| Semi Deviation | 1.66 | |||
| Downside Deviation | 2.21 | |||
| Coefficient Of Variation | 5535.62 | |||
| Standard Deviation | 2.23 |
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.
Tembaga Mulia 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 Tembaga Mulia 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. Tembaga Mulia'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, Tembaga Mulia'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 Tembaga Mulia Semanan.
Other Information on Investing in Tembaga Stock
Tembaga Mulia financial ratios help investors to determine whether Tembaga 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 Tembaga with respect to the benefits of owning Tembaga Mulia security.