We consider Google not too risky. Google Inc
holds Efficiency (Sharpe) Ratio of 0.0041 which attests that Google Inc
had 0.0041% of return per unit of risk over the last 1 month. Our philosophy towards determining volatility of a stock is to use all available market data together with company specific technical indicators
that cannot be diversified away. We have found twenty-eight technical indicators
for Google Inc which you can use to evaluate future volatility of the corporation. Please check out Google Market Risk Adjusted Performance
of 0.0396 and Risk Adjusted Performance
of 0.0306 to validate if risk estimate we provide are consistent with the epected return of 0.0035%.
Projected Return Density against Market
Given the investment horizon of 30 days, the stock has beta coefficient of 1.2753 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Google will likely underperform. Additionally, Google Inc has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming NYSE
Given the investment horizon of 30 days, the coefficient of variation of Google is 24331.54. The daily returns are destributed with a variance of 0.75 and standard deviation of 0.86. The mean deviation of Google Inc is currently at 0.63. For similar time horizon, the selected benchmark (NYSE) has volatility of 0.47
Actual Return Volatility
Google Inc inherits 0.8632% risk (volatility on return distribution) over the 30 days horizon. NYSE inherits 0.4676% risk (volatility on return distribution) over the 30 days horizon.