Illinois Story

Closer look at Illinois Tool Variance

Illinois Tool Works has current Variance of 1.86. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance   =  SUM(RET DEV)2  N

=

1.86

SUM	=	Summation notation
RET DEV	=	Actual returns deviation over selected period
N	=	Number of points for the period

Let's now compare Illinois Tool Variance to its closest peers:

	ITW	1.8600364681780273
	B	10.78
	CR	7.87
	CW	7.36
	GE	5.32

Another 3 percent climb for Illinois Tool

Skewness is down to 0.4. It may cause a possible volatility fall. As of the 5th of February, Illinois Tool retains the Risk Adjusted Performance of 0.0125, downside deviation of 1.26, and Market Risk Adjusted Performance of 0.0134. Illinois Tool technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Illinois Tool Works, which can be compared to its competitors. Please check out Illinois Tool Works coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Illinois Tool is priced fairly, providing market reflects its last-minute price of 202.12 per share. Given that Illinois Tool Works has jensen alpha of (0.22), we strongly advise you to confirm Illinois Tool Works's regular market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Illinois Tool Investment

While some companies in the specialty industrial machinery industry are either recovering or due for a correction, Illinois Tool may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Illinois Tool holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Illinois Tool.