Bukit Asam (Indonesia) Volatility
| PTBA Stock | IDR 3,020 20.00 0.67% |
Bukit Asam appears to be very steady, given 3 months investment horizon. Bukit Asam Tbk secures Sharpe Ratio (or Efficiency) of 0.16, which signifies that the company had a 0.16% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Bukit Asam Tbk, which you can use to evaluate the volatility of the firm. Please makes use of Bukit Asam's Risk Adjusted Performance of 0.0576, downside deviation of 1.7, and Mean Deviation of 1.28 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Bukit Asam's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Bukit Asam 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 Bukit daily returns, and it is calculated using variance and standard deviation. We also use Bukit's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bukit Asam volatility.
Bukit |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bukit Asam can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Bukit Asam at lower prices. For example, an investor can purchase Bukit stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Bukit Asam's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Bukit Stock
| 0.63 | BMRI | Bank Mandiri Persero Earnings Call This Week | PairCorr |
Moving against Bukit Stock
| 0.82 | TOWR | PT Sarana Menara Earnings Call This Week | PairCorr |
| 0.64 | FREN | Smartfren Telecom Tbk | PairCorr |
| 0.53 | INDF | Indofood Sukses Makmur | PairCorr |
| 0.51 | BTPN | Bank Tabungan Pensiunan | PairCorr |
Bukit Asam Market Sensitivity And Downside Risk
Bukit Asam's beta coefficient measures the volatility of Bukit 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 Bukit stock's returns against your selected market. In other words, Bukit Asam's beta of -0.4 provides an investor with an approximation of how much risk Bukit Asam stock can potentially add to one of your existing portfolios. Bukit Asam Tbk has relatively low volatility with skewness of 0.47 and kurtosis of 1.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bukit Asam'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 Bukit Asam'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 Bukit Asam Tbk Demand TrendCheck current 90 days Bukit Asam correlation with market (NYSE Composite)Bukit Beta |
Bukit 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 | 1.84 |
It is essential to understand the difference between upside risk (as represented by Bukit Asam's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bukit Asam's daily returns or price. Since the actual investment returns on holding a position in bukit 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 Bukit Asam.
Bukit Asam Tbk Stock Volatility Analysis
Volatility refers to the frequency at which Bukit Asam stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Bukit Asam's price changes. Investors will then calculate the volatility of Bukit Asam'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 Bukit Asam's volatility:
Historical Volatility
This type of stock volatility measures Bukit Asam's fluctuations based on previous trends. It's commonly used to predict Bukit Asam'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 Bukit Asam'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 Bukit Asam'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. Bukit Asam 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.
Bukit Asam Projected Return Density Against Market
Assuming the 90 days trading horizon Bukit Asam Tbk has a beta of -0.4043 indicating as returns on the benchmark increase, returns on holding Bukit Asam are expected to decrease at a much lower rate. During a bear market, however, Bukit Asam Tbk is likely to outperform the market.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 Bukit Asam or Oil, Gas & Consumable Fuels 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 Bukit Asam'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 Bukit 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.
Bukit Asam Tbk has an alpha of 0.1625, implying that it can generate a 0.16 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Bukit Asam 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.Bukit Asam Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Bukit Asam is 630.48. The daily returns are distributed with a variance of 3.39 and standard deviation of 1.84. The mean deviation of Bukit Asam Tbk is currently at 1.35. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.16 | |
β | Beta against NYSE Composite | -0.4 | |
σ | Overall volatility | 1.84 | |
Ir | Information ratio | 0.03 |
Bukit Asam Stock Return Volatility
Bukit Asam historical daily return volatility represents how much of Bukit Asam stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.8423% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6193% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Bukit Asam Volatility
Volatility is a rate at which the price of Bukit Asam 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 Bukit Asam may increase or decrease. In other words, similar to Bukit's beta indicator, it measures the risk of Bukit Asam and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bukit Asam 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 Bukit Asam Tbk, together with its subsidiaries, engages in the coal mining activities in Indonesia. PT Bukit Asam Tbk is a subsidiary of PT Indonesia Asahan Aluminium . Bukit Asam operates under Thermal Coal classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 1827 people.
Bukit Asam'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 Bukit Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bukit Asam's price varies over time.
3 ways to utilize Bukit Asam's volatility to invest better
Higher Bukit Asam's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Bukit Asam 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. Bukit Asam 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 Bukit Asam Tbk investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Bukit Asam'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 Bukit Asam's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Bukit Asam Investment Opportunity
Bukit Asam Tbk has a volatility of 1.84 and is 2.97 times more volatile than NYSE Composite. 16 percent of all equities and portfolios are less risky than Bukit Asam. You can use Bukit Asam Tbk to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Bukit Asam to be traded at 3322.0 in 90 days.Good diversification
The correlation between Bukit Asam Tbk and NYA is -0.15 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Asam Tbk and NYA in the same portfolio, assuming nothing else is changed.
Bukit Asam Additional Risk Indicators
The analysis of Bukit Asam'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 Bukit Asam's investment and either accepting that risk or mitigating it. Along with some common measures of Bukit Asam 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 | 0.0576 | |||
| Market Risk Adjusted Performance | (0.31) | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 1.46 | |||
| Downside Deviation | 1.7 | |||
| Coefficient Of Variation | 1216.6 | |||
| Standard Deviation | 1.71 |
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.
Bukit Asam 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.
| Ford vs. Bukit Asam | ||
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| Microsoft vs. Bukit Asam | ||
| Bank of America vs. Bukit Asam | ||
| Dupont De vs. Bukit Asam | ||
| Citigroup vs. Bukit Asam | ||
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 Bukit Asam 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. Bukit Asam'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, Bukit Asam'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 Bukit Asam Tbk.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Bukit Asam Tbk. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Bukit Stock analysis
When running Bukit Asam's price analysis, check to measure Bukit Asam's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bukit Asam is operating at the current time. Most of Bukit Asam's value examination focuses on studying past and present price action to predict the probability of Bukit Asam's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bukit Asam's price. Additionally, you may evaluate how the addition of Bukit Asam to your portfolios can decrease your overall portfolio volatility.
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