Wira Global (Indonesia) Volatility
| WGSH Stock | 89.00 1.00 1.14% |
As of now, Wira Stock is very steady. Wira Global Solusi shows Sharpe Ratio of 0.045, which attests that the company had a 0.045% return per unit of risk over the last 3 months. We have found thirty technical indicators for Wira Global Solusi, which you can use to evaluate the volatility of the company. Please check out Wira Global's Downside Deviation of 1.95, market risk adjusted performance of (0.36), and Mean Deviation of 1.6 to validate if the risk estimate we provide is consistent with the expected return of 0.0941%. Key indicators related to Wira Global's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Wira Global 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 Wira daily returns, and it is calculated using variance and standard deviation. We also use Wira's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Wira Global volatility.
Wira |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Wira Global at lower prices. For example, an investor can purchase Wira 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 Wira Stock
Moving against Wira Stock
| 0.37 | JIHD | Jakarta Int Hotels | PairCorr |
| 0.37 | NINE | PT Techno9 Indonesia | PairCorr |
| 0.33 | BYAN | Bayan Resources Tbk | PairCorr |
Wira Global Market Sensitivity And Downside Risk
Wira Global's beta coefficient measures the volatility of Wira 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 Wira stock's returns against your selected market. In other words, Wira Global's beta of -0.68 provides an investor with an approximation of how much risk Wira Global stock can potentially add to one of your existing portfolios. Wira Global Solusi has relatively low volatility with skewness of 1.09 and kurtosis of 3.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wira Global'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 Wira Global'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 Wira Global Solusi Demand TrendCheck current 90 days Wira Global correlation with market (Dow Jones Industrial)Wira Beta |
Wira 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 | 2.09 |
It is essential to understand the difference between upside risk (as represented by Wira Global's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Wira Global's daily returns or price. Since the actual investment returns on holding a position in wira 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 Wira Global.
Wira Global Solusi Stock Volatility Analysis
Volatility refers to the frequency at which Wira Global stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Wira Global's price changes. Investors will then calculate the volatility of Wira Global'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 Wira Global's volatility:
Historical Volatility
This type of stock volatility measures Wira Global's fluctuations based on previous trends. It's commonly used to predict Wira Global'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 Wira Global'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 Wira Global'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. Wira Global Solusi 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.
Wira Global Projected Return Density Against Market
Assuming the 90 days trading horizon Wira Global Solusi has a beta of -0.6844 . This entails as returns on the benchmark increase, returns on holding Wira Global are expected to decrease at a much lower rate. During a bear market, however, Wira Global Solusi 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 Wira Global 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 Wira Global'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 Wira 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.
Wira Global Solusi has an alpha of 0.3338, implying that it can generate a 0.33 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Wira Global 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.Wira Global Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Wira Global is 2220.17. The daily returns are distributed with a variance of 4.37 and standard deviation of 2.09. The mean deviation of Wira Global Solusi is currently at 1.48. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.33 | |
β | Beta against Dow Jones | -0.68 | |
σ | Overall volatility | 2.09 | |
Ir | Information ratio | 0.06 |
Wira Global Stock Return Volatility
Wira Global historical daily return volatility represents how much of Wira Global stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.0895% 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 Wira Global Volatility
Volatility is a rate at which the price of Wira Global 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 Wira Global may increase or decrease. In other words, similar to Wira's beta indicator, it measures the risk of Wira Global and helps estimate the fluctuations that may happen in a short period of time. So if prices of Wira Global 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 Wira Global's volatility to invest better
Higher Wira Global's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Wira Global Solusi 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. Wira Global Solusi 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 Wira Global Solusi investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Wira Global'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 Wira Global's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Wira Global Investment Opportunity
Wira Global Solusi has a volatility of 2.09 and is 2.68 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Wira Global. You can use Wira Global Solusi to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Wira Global to be traded at 97.9 in 90 days.Very good diversification
The correlation between Wira Global Solusi and DJI is -0.25 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wira Global Solusi and DJI in the same portfolio, assuming nothing else is changed.
Wira Global Additional Risk Indicators
The analysis of Wira Global'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 Wira Global's investment and either accepting that risk or mitigating it. Along with some common measures of Wira Global 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 | 0.1004 | |||
| Market Risk Adjusted Performance | (0.36) | |||
| Mean Deviation | 1.6 | |||
| Semi Deviation | 1.46 | |||
| Downside Deviation | 1.95 | |||
| Coefficient Of Variation | 813.3 | |||
| Standard Deviation | 2.13 |
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.
Wira Global 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 Wira Global 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. Wira Global'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, Wira Global'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 Wira Global Solusi.
Other Information on Investing in Wira Stock
Wira Global financial ratios help investors to determine whether Wira 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 Wira with respect to the benefits of owning Wira Global security.