Perdana Karya Mean Deviation vs. Standard Deviation

PKPK Stock  IDR 316.00  2.00  0.64%   
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Perdana Karya Perkasa has current Mean Deviation of 0.9089. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation

 = 

SUM(RET DEV)

N

 = 
0.9089
SUM = Summation notation
RET DEV = Sum of return deviations of Perdana Karya
N = Number of calculation points for selected time horizon

Perdana Karya Mean Deviation Peers Comparison

Perdana Mean Deviation Relative To Other Indicators

Perdana Karya Perkasa is regarded fourth in mean deviation category among related companies. It is regarded third in standard deviation category among related companies creating about  1.45  of Standard Deviation per Mean Deviation. The ratio of Standard Deviation to Mean Deviation for Perdana Karya Perkasa is roughly  1.45 
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
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