Sumber Global (Indonesia) Volatility
SGER Stock | IDR 432.00 14.00 3.14% |
As of now, Sumber Stock is very steady. Sumber Global Energy owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0316, which indicates the firm had a 0.0316% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Sumber Global Energy, which you can use to evaluate the volatility of the company. Please validate Sumber Global's Risk Adjusted Performance of 0.0341, semi deviation of 2.04, and Coefficient Of Variation of 2934.21 to confirm if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to Sumber Global's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Sumber 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 Sumber daily returns, and it is calculated using variance and standard deviation. We also use Sumber's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sumber Global volatility.
Sumber |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sumber Global at lower prices. For example, an investor can purchase Sumber 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 Sumber Stock
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0.38 | LMPI | Langgeng Makmur Industri | PairCorr |
Sumber Global Market Sensitivity And Downside Risk
Sumber Global's beta coefficient measures the volatility of Sumber 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 Sumber stock's returns against your selected market. In other words, Sumber Global's beta of 0.54 provides an investor with an approximation of how much risk Sumber Global stock can potentially add to one of your existing portfolios. Sumber Global Energy currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.07. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sumber 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 Sumber 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 Sumber Global Energy Demand TrendCheck current 90 days Sumber Global correlation with market (Dow Jones Industrial)Sumber Beta |
Sumber 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 | 4.16 |
It is essential to understand the difference between upside risk (as represented by Sumber Global's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sumber Global's daily returns or price. Since the actual investment returns on holding a position in sumber 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 Sumber Global.
Sumber Global Energy Stock Volatility Analysis
Volatility refers to the frequency at which Sumber Global stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sumber Global's price changes. Investors will then calculate the volatility of Sumber 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 Sumber Global's volatility:
Historical Volatility
This type of stock volatility measures Sumber Global's fluctuations based on previous trends. It's commonly used to predict Sumber 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 Sumber 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 Sumber 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. Sumber Global Energy 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.
Sumber Global Projected Return Density Against Market
Assuming the 90 days trading horizon Sumber Global has a beta of 0.5362 . This usually implies as returns on the market go up, Sumber Global average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Sumber Global Energy 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 Sumber Global or Energy 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 Sumber 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 Sumber 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.
Sumber Global Energy has an alpha of 0.0719, implying that it can generate a 0.0719 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
Returns |
What Drives a Sumber 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.Sumber Global Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Sumber Global is 3163.39. The daily returns are distributed with a variance of 17.33 and standard deviation of 4.16. The mean deviation of Sumber Global Energy is currently at 2.18. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.07 | |
β | Beta against Dow Jones | 0.54 | |
σ | Overall volatility | 4.16 | |
Ir | Information ratio | 0.01 |
Sumber Global Stock Return Volatility
Sumber Global historical daily return volatility represents how much of Sumber Global stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 4.1625% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7454% volatility on return distribution over the 90 days horizon. Performance |
Timeline |
About Sumber Global Volatility
Volatility is a rate at which the price of Sumber 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 Sumber Global may increase or decrease. In other words, similar to Sumber's beta indicator, it measures the risk of Sumber Global and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sumber 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.PT Sumber Global Energy, together with its subsidiaries, engages in coal trading and shipment services in Indonesia. PT Sumber Global Energy is a subsidiary of PT Sumbermas Inti Energi. Sumber Global operates under Thermal Coal classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 51 people.
Sumber Global'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 Sumber Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sumber Global's price varies over time.
3 ways to utilize Sumber Global's volatility to invest better
Higher Sumber 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 Sumber Global Energy 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. Sumber Global Energy 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 Sumber Global Energy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sumber 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 Sumber Global's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sumber Global Investment Opportunity
Sumber Global Energy has a volatility of 4.16 and is 5.55 times more volatile than Dow Jones Industrial. 37 percent of all equities and portfolios are less risky than Sumber Global. You can use Sumber Global Energy 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 Sumber Global to be traded at 414.72 in 90 days.Average diversification
The correlation between Sumber Global Energy and DJI is 0.1 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Global Energy and DJI in the same portfolio, assuming nothing else is changed.
Sumber Global Additional Risk Indicators
The analysis of Sumber 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 Sumber Global's investment and either accepting that risk or mitigating it. Along with some common measures of Sumber 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 | 0.0341 | |||
Market Risk Adjusted Performance | 0.2475 | |||
Mean Deviation | 2.06 | |||
Semi Deviation | 2.04 | |||
Downside Deviation | 2.58 | |||
Coefficient Of Variation | 2934.21 | |||
Standard Deviation | 4.03 |
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.
Sumber 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 Sumber 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. Sumber 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, Sumber 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 Sumber Global Energy.
Other Information on Investing in Sumber Stock
Sumber Global financial ratios help investors to determine whether Sumber 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 Sumber with respect to the benefits of owning Sumber Global security.