Visi Media (Indonesia) Volatility
| VIVA Stock | IDR 13.00 1.00 7.14% |
Visi Media is slightly risky given 3 months investment horizon. Visi Media Asia owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.26, which indicates the firm had a 0.26 % return per unit of risk over the last 3 months. We were able to collect data for thirty different technical indicators, which can help you to evaluate if expected returns of 1.51% are justified by taking the suggested risk. Use Visi Media Asia Coefficient Of Variation of 410.2, risk adjusted performance of 0.2246, and Semi Deviation of 3.16 to evaluate company specific risk that cannot be diversified away. Key indicators related to Visi Media's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Visi Media 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 Visi daily returns, and it is calculated using variance and standard deviation. We also use Visi's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Visi Media volatility.
Visi |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Visi Media at lower prices. For example, an investor can purchase Visi 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 Visi Stock
| 0.71 | BBYB | Bank Yudha Bhakti | PairCorr |
| 0.64 | VINS | Victoria Insurance Tbk | PairCorr |
| 0.48 | SKLT | Sekar Laut Tbk | PairCorr |
| 0.38 | SIPD | PT Sreeya Sewu | PairCorr |
Visi Media Market Sensitivity And Downside Risk
Visi Media's beta coefficient measures the volatility of Visi 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 Visi stock's returns against your selected market. In other words, Visi Media's beta of 0.17 provides an investor with an approximation of how much risk Visi Media stock can potentially add to one of your existing portfolios. Visi Media Asia shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Visi Media'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 Visi Media'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 Visi Media Asia Demand TrendCheck current 90 days Visi Media correlation with market (Dow Jones Industrial)Visi Beta |
Visi 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 | 5.92 |
It is essential to understand the difference between upside risk (as represented by Visi Media's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Visi Media's daily returns or price. Since the actual investment returns on holding a position in visi 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 Visi Media.
Visi Media Asia Stock Volatility Analysis
Volatility refers to the frequency at which Visi Media stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Visi Media's price changes. Investors will then calculate the volatility of Visi Media'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 Visi Media's volatility:
Historical Volatility
This type of stock volatility measures Visi Media's fluctuations based on previous trends. It's commonly used to predict Visi Media'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 Visi Media'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 Visi Media'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. Visi Media Asia 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.
Visi Media Projected Return Density Against Market
Assuming the 90 days trading horizon Visi Media has a beta of 0.1686 . This entails as returns on the market go up, Visi Media average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Visi Media Asia 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 Visi Media or Media 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 Visi Media'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 Visi 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.
Visi Media Asia has an alpha of 1.3211, implying that it can generate a 1.32 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Visi Media 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.Visi Media Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Visi Media is 391.74. The daily returns are distributed with a variance of 35.01 and standard deviation of 5.92. The mean deviation of Visi Media Asia is currently at 4.65. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | 1.32 | |
β | Beta against Dow Jones | 0.17 | |
σ | Overall volatility | 5.92 | |
Ir | Information ratio | 0.26 |
Visi Media Stock Return Volatility
Visi Media historical daily return volatility represents how much of Visi Media stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 5.9166% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8446% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Visi Media Volatility
Volatility is a rate at which the price of Visi Media 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 Visi Media may increase or decrease. In other words, similar to Visi's beta indicator, it measures the risk of Visi Media and helps estimate the fluctuations that may happen in a short period of time. So if prices of Visi Media 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 Visi Media's volatility to invest better
Higher Visi Media's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Visi Media Asia 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. Visi Media Asia 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 Visi Media Asia investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Visi Media'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 Visi Media's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Visi Media Investment Opportunity
Visi Media Asia has a volatility of 5.92 and is 7.05 times more volatile than Dow Jones Industrial. 52 percent of all equities and portfolios are less risky than Visi Media. You can use Visi Media Asia to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Visi Media to be traded at 12.35 in 90 days.Significant diversification
The correlation between Visi Media Asia and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and DJI in the same portfolio, assuming nothing else is changed.
Visi Media Additional Risk Indicators
The analysis of Visi Media'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 Visi Media's investment and either accepting that risk or mitigating it. Along with some common measures of Visi Media 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 | 0.2246 | |||
| Market Risk Adjusted Performance | 7.77 | |||
| Mean Deviation | 4.01 | |||
| Semi Deviation | 3.16 | |||
| Downside Deviation | 7.6 | |||
| Coefficient Of Variation | 410.2 | |||
| Standard Deviation | 5.41 |
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.
Visi Media 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 Visi Media 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. Visi Media'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, Visi Media'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 Visi Media Asia.
Other Information on Investing in Visi Stock
Visi Media financial ratios help investors to determine whether Visi 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 Visi with respect to the benefits of owning Visi Media security.