Galapagos Risk Analysis And Volatility

GLPG -- USA Stock  

Fiscal Quarter End: December 31, 2019  

Macroaxis considers Galapagos very steady given 3 months investment horizon. Galapagos NV holds Efficiency (Sharpe) Ratio of 0.2322 which attests that the entity had 0.2322% of return per unit of risk over the last 3 months. Our philosophy towards determining volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Galapagos NV which you can use to evaluate future volatility of the corporation. Please utilize Galapagos Market Risk Adjusted Performance of 0.4771, Risk Adjusted Performance of 0.1277 and Downside Deviation of 2.05 to validate if our risk estimates are consistent with your expectations.

90 Days Market Risk

Very steady

Chance of Distress in 24 months

Below average

90 Days Economic Sensitivity

Follows market closely
Horizon     30 Days    Login   to change

Galapagos Market Sensitivity

Galapagos returns are very sensitive to returns on the market. As market goes up or down, Galapagos is expected to follow.
3 Months Beta |Analyze Galapagos NV Demand Trend
Check current 30 days Galapagos correlation with market (DOW)
β = 0.8949

Galapagos Central Daily Price Deviation

Galapagos NV Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Galapagos NV 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. View also all equity analysis or get more info about average price price transform indicator.

Galapagos Projected Return Density Against Market

Given the investment horizon of 30 days, Galapagos has beta of 0.8949 . This indicates Galapagos NV market returns are highly-sensitive to returns on the market. As the market goes up or down, Galapagos is expected to follow. Moreover, The company has an alpha of 0.3616 implying that it can potentially generate 0.3616% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Given the investment horizon of 30 days, the coefficient of variation of Galapagos is 430.73. The daily returns are destributed with a variance of 4.48 and standard deviation of 2.12. The mean deviation of Galapagos NV is currently at 1.54. For similar time horizon, the selected benchmark (DOW) has volatility of 0.6
α
Alpha over DOW
=0.36
β
Beta against DOW=0.89
σ
Overall volatility
=2.12
Ir
Information ratio =0.17

Galapagos Return Volatility

the firm inherits 2.1162% risk (volatility on return distribution) over the 30 days horizon. the entity inherits 0.6082% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Galapagos Investment Opportunity

Galapagos NV has a volatility of 2.12 and is 3.48 times more volatile than DOW. 18  of all equities and portfolios are less risky than Galapagos. Compared to the overall equity markets, volatility of historical daily returns of Galapagos NV is lower than 18 () of all global equities and portfolios over the last 30 days. Use Galapagos NV to enhance returns of your portfolios. The stock experiences large bullish trend. Check odds of Galapagos to be traded at $234.85 in 30 days. . Galapagos returns are very sensitive to returns on the market. As market goes up or down, Galapagos is expected to follow.

Galapagos correlation with market

correlation synergy
Modest diversification
Overlapping area represents the amount of risk that can be diversified away by holding Galapagos NV and equity matching DJI index in the same portfolio.

Galapagos Current Risk Indicators

Galapagos Suggested Diversification Pairs

Please also check Risk vs Return Analysis. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.
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