Macroaxis considers Google not too risky given 1 month investment horizon. Google Inc
holds Efficiency (Sharpe) Ratio of 0.21 which attests that Google Inc
had 0.21% 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 utilize Google Downside Deviation
of 0.9602, Market Risk Adjusted Performance
of 0.1384 and Risk Adjusted Performance
of 0.11 to validate if our risk estimates are consistent with your expectations.
Projected Return Density against Market
Given the investment horizon of 30 days, the stock has beta coefficient of 1.99 . 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. Moreover, Google Inc has an alpha of 0.185 implying that it can potentially generate 0.185% excess return over NYSE after adjusting for the inherited market risk (beta).
Given the investment horizon of 30 days, the coefficient of variation of Google is 485.68. The daily returns are destributed with a variance of 1.66 and standard deviation of 1.29. The mean deviation of Google Inc is currently at 0.95. For similar time horizon, the selected benchmark (NYSE) has volatility of 0.44
Actual Return Volatility
Google Inc inherits 1.29% risk (volatility on return distribution) over the 30 days horizon. NYSE inherits 0.44% risk (volatility on return distribution) over the 30 days horizon.