Pudjiadi Prestige (Indonesia) Volatility
| PUDP Stock | IDR 202.00 8.00 3.81% |
Pudjiadi Prestige Tbk maintains Sharpe Ratio (i.e., Efficiency) of -0.2, which implies the firm had a -0.2 % return per unit of risk over the last 3 months. Pudjiadi Prestige Tbk exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Pudjiadi Prestige's Semi Deviation of 4.2, coefficient of variation of 2825.35, and Risk Adjusted Performance of 0.0351 to confirm the risk estimate we provide. Key indicators related to Pudjiadi Prestige's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Pudjiadi Prestige 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 Pudjiadi daily returns, and it is calculated using variance and standard deviation. We also use Pudjiadi's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Pudjiadi Prestige volatility.
Pudjiadi |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Pudjiadi Prestige at lower prices. For example, an investor can purchase Pudjiadi 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 Pudjiadi Stock
| 0.72 | GGRM | Gudang Garam Tbk | PairCorr |
| 0.83 | UNTR | United Tractors Tbk | PairCorr |
| 0.63 | RDTX | Roda Vivatex Tbk | PairCorr |
| 0.7 | AALI | Astra Agro Lestari | PairCorr |
| 0.71 | ADMF | Adira Dinamika Multi | PairCorr |
| 0.7 | TCID | Mandom Indonesia Tbk | PairCorr |
| 0.73 | AMFG | Asahimas Flat Glass | PairCorr |
| 0.67 | BBNI | Bank Negara Indonesia | PairCorr |
Pudjiadi Prestige Market Sensitivity And Downside Risk
Pudjiadi Prestige's beta coefficient measures the volatility of Pudjiadi 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 Pudjiadi stock's returns against your selected market. In other words, Pudjiadi Prestige's beta of 1.69 provides an investor with an approximation of how much risk Pudjiadi Prestige stock can potentially add to one of your existing portfolios. Pudjiadi Prestige 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 Pudjiadi Prestige'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 Pudjiadi Prestige'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 Pudjiadi Prestige Tbk Demand TrendCheck current 90 days Pudjiadi Prestige correlation with market (Dow Jones Industrial)Pudjiadi Beta |
Pudjiadi 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 | 3.3 |
It is essential to understand the difference between upside risk (as represented by Pudjiadi Prestige's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Pudjiadi Prestige's daily returns or price. Since the actual investment returns on holding a position in pudjiadi 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 Pudjiadi Prestige.
Pudjiadi Prestige Tbk Stock Volatility Analysis
Volatility refers to the frequency at which Pudjiadi Prestige stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Pudjiadi Prestige's price changes. Investors will then calculate the volatility of Pudjiadi Prestige'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 Pudjiadi Prestige's volatility:
Historical Volatility
This type of stock volatility measures Pudjiadi Prestige's fluctuations based on previous trends. It's commonly used to predict Pudjiadi Prestige'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 Pudjiadi Prestige'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 Pudjiadi Prestige'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. Pudjiadi Prestige 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.
Pudjiadi Prestige Projected Return Density Against Market
Assuming the 90 days trading horizon the stock has the beta coefficient of 1.6912 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Pudjiadi Prestige 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 Pudjiadi Prestige or Real Estate Management & Development 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 Pudjiadi Prestige'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 Pudjiadi 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.
Pudjiadi Prestige Tbk has an alpha of 0.2864, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Pudjiadi Prestige 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.Pudjiadi Prestige Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Pudjiadi Prestige is -500.15. The daily returns are distributed with a variance of 10.9 and standard deviation of 3.3. The mean deviation of Pudjiadi Prestige Tbk is currently at 2.61. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.29 | |
β | Beta against Dow Jones | 1.69 | |
σ | Overall volatility | 3.30 | |
Ir | Information ratio | 0.04 |
Pudjiadi Prestige Stock Return Volatility
Pudjiadi Prestige historical daily return volatility represents how much of Pudjiadi Prestige stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.3017% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7503% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Pudjiadi Prestige Volatility
Volatility is a rate at which the price of Pudjiadi Prestige 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 Pudjiadi Prestige may increase or decrease. In other words, similar to Pudjiadi's beta indicator, it measures the risk of Pudjiadi Prestige and helps estimate the fluctuations that may happen in a short period of time. So if prices of Pudjiadi Prestige 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 Pudjiadi Prestige's volatility to invest better
Higher Pudjiadi Prestige's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Pudjiadi Prestige 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. Pudjiadi Prestige 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 Pudjiadi Prestige Tbk investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Pudjiadi Prestige'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 Pudjiadi Prestige's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Pudjiadi Prestige Investment Opportunity
Pudjiadi Prestige Tbk has a volatility of 3.3 and is 4.4 times more volatile than Dow Jones Industrial. 29 percent of all equities and portfolios are less risky than Pudjiadi Prestige. You can use Pudjiadi Prestige Tbk to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Pudjiadi Prestige to be traded at 193.92 in 90 days.Average diversification
The correlation between Pudjiadi Prestige Tbk and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Prestige Tbk and DJI in the same portfolio, assuming nothing else is changed.
Pudjiadi Prestige Additional Risk Indicators
The analysis of Pudjiadi Prestige'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 Pudjiadi Prestige's investment and either accepting that risk or mitigating it. Along with some common measures of Pudjiadi Prestige 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 | 0.0351 | |||
| Market Risk Adjusted Performance | 0.1563 | |||
| Mean Deviation | 4.21 | |||
| Semi Deviation | 4.2 | |||
| Downside Deviation | 4.57 | |||
| Coefficient Of Variation | 2825.35 | |||
| Standard Deviation | 7.28 |
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.
Pudjiadi Prestige 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 Pudjiadi Prestige 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. Pudjiadi Prestige'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, Pudjiadi Prestige'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 Pudjiadi Prestige Tbk.
Other Information on Investing in Pudjiadi Stock
Pudjiadi Prestige financial ratios help investors to determine whether Pudjiadi 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 Pudjiadi with respect to the benefits of owning Pudjiadi Prestige security.