Catur Sentosa (Indonesia) Volatility
| CSAP Stock | IDR 454.00 2.00 0.44% |
Catur Sentosa Adiprana secures Sharpe Ratio (or Efficiency) of -0.0235, which signifies that the company had a -0.0235% return per unit of risk over the last 3 months. Catur Sentosa Adiprana exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Catur Sentosa's Mean Deviation of 1.5, risk adjusted performance of (0.01), and Standard Deviation of 2.58 to double-check the risk estimate we provide. Key indicators related to Catur Sentosa's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Catur Sentosa 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 Catur daily returns, and it is calculated using variance and standard deviation. We also use Catur's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Catur Sentosa volatility.
Catur |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Catur Sentosa at lower prices. For example, an investor can purchase Catur 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 Catur Stock
Catur Sentosa Market Sensitivity And Downside Risk
Catur Sentosa's beta coefficient measures the volatility of Catur 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 Catur stock's returns against your selected market. In other words, Catur Sentosa's beta of 0.45 provides an investor with an approximation of how much risk Catur Sentosa stock can potentially add to one of your existing portfolios. Catur Sentosa Adiprana exhibits very low volatility with skewness of 1.44 and kurtosis of 8.96. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Catur Sentosa'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 Catur Sentosa'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 Catur Sentosa Adiprana Demand TrendCheck current 90 days Catur Sentosa correlation with market (Dow Jones Industrial)Catur Beta |
Catur 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 | 2.66 |
It is essential to understand the difference between upside risk (as represented by Catur Sentosa's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Catur Sentosa's daily returns or price. Since the actual investment returns on holding a position in catur 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 Catur Sentosa.
Catur Sentosa Adiprana Stock Volatility Analysis
Volatility refers to the frequency at which Catur Sentosa stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Catur Sentosa's price changes. Investors will then calculate the volatility of Catur Sentosa'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 Catur Sentosa's volatility:
Historical Volatility
This type of stock volatility measures Catur Sentosa's fluctuations based on previous trends. It's commonly used to predict Catur Sentosa'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 Catur Sentosa'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 Catur Sentosa'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. Catur Sentosa Adiprana 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.
Catur Sentosa Projected Return Density Against Market
Assuming the 90 days trading horizon Catur Sentosa has a beta of 0.4478 suggesting as returns on the market go up, Catur Sentosa average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Catur Sentosa Adiprana 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 Catur Sentosa or Distributors 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 Catur Sentosa'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 Catur 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.
Catur Sentosa Adiprana 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 Catur Sentosa 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.Catur Sentosa Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Catur Sentosa is -4254.09. The daily returns are distributed with a variance of 7.06 and standard deviation of 2.66. The mean deviation of Catur Sentosa Adiprana is currently at 1.57. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 0.45 | |
σ | Overall volatility | 2.66 | |
Ir | Information ratio | -0.07 |
Catur Sentosa Stock Return Volatility
Catur Sentosa historical daily return volatility represents how much of Catur Sentosa stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.657% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Catur Sentosa Volatility
Volatility is a rate at which the price of Catur Sentosa 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 Catur Sentosa may increase or decrease. In other words, similar to Catur's beta indicator, it measures the risk of Catur Sentosa and helps estimate the fluctuations that may happen in a short period of time. So if prices of Catur Sentosa 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 Catur Sentosa Adiprana Tbk, through its subsidiaries, distributes building materials and consumer products in Indonesia. PT Catur Sentosa Adiprana Tbk was founded in 1966 and is headquartered in Jakarta Barat, Indonesia. Catur Sentosa is traded on Jakarta Stock Exchange in Indonesia.
Catur Sentosa'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 Catur Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Catur Sentosa's price varies over time.
3 ways to utilize Catur Sentosa's volatility to invest better
Higher Catur Sentosa's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Catur Sentosa Adiprana 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. Catur Sentosa Adiprana 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 Catur Sentosa Adiprana investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Catur Sentosa'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 Catur Sentosa's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Catur Sentosa Investment Opportunity
Catur Sentosa Adiprana has a volatility of 2.66 and is 3.64 times more volatile than Dow Jones Industrial. 23 percent of all equities and portfolios are less risky than Catur Sentosa. You can use Catur Sentosa Adiprana to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Catur Sentosa to be traded at 476.7 in 90 days.Average diversification
The correlation between Catur Sentosa Adiprana and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Catur Sentosa Adiprana and DJI in the same portfolio, assuming nothing else is changed.
Catur Sentosa Additional Risk Indicators
The analysis of Catur Sentosa'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 Catur Sentosa's investment and either accepting that risk or mitigating it. Along with some common measures of Catur Sentosa 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 1.5 | |||
| Coefficient Of Variation | (4,398) | |||
| Standard Deviation | 2.58 | |||
| Variance | 6.64 | |||
| Information Ratio | (0.07) |
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.
Catur Sentosa 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 Catur Sentosa 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. Catur Sentosa'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, Catur Sentosa'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 Catur Sentosa Adiprana.
Other Information on Investing in Catur Stock
Catur Sentosa financial ratios help investors to determine whether Catur 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 Catur with respect to the benefits of owning Catur Sentosa security.