Gamestop Stock Volatility

GME
 Stock
  

USD 39.68  0.84  2.07%   

Gamestop Corp is not too volatile given 3 months investment horizon. Gamestop Corp holds Efficiency (Sharpe) Ratio of 0.16, which attests that the entity had 0.16% of return per unit of risk over the last 3 months. Our standpoint towards determining the risk of a stock is to use both market data as well as company specific technical data. We have collected data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.06% are justified by taking the suggested risk. Use Gamestop Corp Downside Deviation of 5.06, market risk adjusted performance of 0.4447, and Risk Adjusted Performance of 0.1879 to evaluate company specific risk that cannot be diversified away.
  
Gamestop Corp 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 Gamestop daily returns, and it is calculated using variance and standard deviation. We also use Gamestop's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gamestop Corp volatility.

720 Days Market Risk

Not too volatile

Chance of Distress

720 Days Economic Sensitivity

Hyperactively responds to market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Gamestop Corp 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 Gamestop Corp at lower prices. For example, an investor can purchase Gamestop 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 Gamestop Corp'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 Gamestop Corp

0.83ASOAcademy Sports AndPairCorr
0.82AZOAutozone Fiscal Year End 20th of September 2022 PairCorr

Moving against Gamestop Corp

0.73ENJYQEnjoy TechnologyPairCorr
0.66AANAarons HoldingsPairCorr

Gamestop Corp Market Sensitivity And Downside Risk

Gamestop Corp's beta coefficient measures the volatility of Gamestop stock compared to the systematic risk of the entire stock 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 Gamestop stock's returns against your selected market. In other words, Gamestop Corp's beta of 2.19 provides an investor with an approximation of how much risk Gamestop Corp stock can potentially add to one of your existing portfolios.
Gamestop Corp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gamestop Corp independently to ensure intended market timing strategies are aligned with expectations about Gamestop Corp volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gamestop Corp'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 Gamestop Corp'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 stocks as prices fall.

Gamestop Corp Implied Volatility

Gamestop Corp's implied volatility exposes the market's sentiment of Gamestop Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Gamestop Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Gamestop Corp stock will not fluctuate a lot when Gamestop Corp's options are near their expiration.
3 Months Beta |Analyze Gamestop Corp Demand Trend
Check current 90 days Gamestop Corp correlation with market (DOW)

Gamestop Beta

    
  2.19  
Gamestop standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

    
  6.52  
It is essential to understand the difference between upside risk (as represented by Gamestop Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gamestop Corp's daily returns or price. Since the actual investment returns on holding a position in gamestop 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 Gamestop Corp.

Using Gamestop Put Option to Manage Risk

Put options written on Gamestop Corp grant holders of the option the right to sell a specified amount of Gamestop Corp at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Gamestop Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Gamestop Corp's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Gamestop Corp will be realized, the loss incurred will be offset by the profits made with the option trade.

Gamestop Corp's PUT expiring on 2022-08-19

   Profit   
Share
       Gamestop Corp Price At Expiration  

Current Gamestop Corp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $77.5-0.91820.009292022-08-1934.6 - 37.534.82View
Put
2022-08-19 PUT at $75.0-0.80560.0125102022-08-1932.05 - 36.3535.97View
Put
2022-08-19 PUT at $72.5-0.90770.010742022-08-1929.55 - 32.550.0View
Put
2022-08-19 PUT at $70.0-0.83540.013562022-08-1927.1 - 30.830.2View
Put
2022-08-19 PUT at $65.0-0.78130.015642022-08-1922.1 - 26.40.69View
Put
2022-08-19 PUT at $62.5-0.84910.016272022-08-1919.65 - 22.9518.47View
Put
2022-08-19 PUT at $60.0-0.94010.0125642022-08-1919.1 - 19.719.3View
Put
2022-08-19 PUT at $57.5-0.94630.0132442022-08-1916.6 - 17.718.1View
Put
2022-08-19 PUT at $56.0-0.76640.021222022-08-1912.25 - 17.1515.7View
Put
2022-08-19 PUT at $55.0-0.94160.0157512022-08-1914.1 - 15.213.18View
Put
2022-08-19 PUT at $54.0-0.75190.023112022-08-1910.3 - 15.213.05View
View All Gamestop Corp Options

Gamestop Corp Stock Volatility Analysis

Volatility refers to the frequency at which Gamestop Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gamestop Corp's price changes. Investors will then calculate the volatility of Gamestop Corp'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 Gamestop Corp's volatility:

Historical Volatility

This type of stock volatility measures Gamestop Corp's fluctuations based on previous trends. It's commonly used to predict Gamestop Corp'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 Gamestop Corp's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Gamestop Corp 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.
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Gamestop Corp Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 2.1924 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Gamestop Corp will likely underperform.
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 Gamestop Corp or Consumer Cyclical 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 Gamestop Corp'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 Gamestop 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.
The company has an alpha of 0.7791, implying that it can generate a 0.78 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Gamestop Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how gamestop stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Gamestop Corp Price Volatility?

Several factors can influence a Stock's stock 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.

Gamestop Corp Stock Risk Measures

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 Gamestop Corp or Consumer Cyclical 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 Gamestop Corp'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 Gamestop 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.
Considering the 90-day investment horizon the coefficient of variation of Gamestop Corp is 612.78. The daily returns are distributed with a variance of 42.49 and standard deviation of 6.52. The mean deviation of Gamestop Corp is currently at 4.78. For similar time horizon, the selected benchmark (DOW) has volatility of 1.24
α
Alpha over DOW
0.78
β
Beta against DOW2.19
σ
Overall volatility
6.52
Ir
Information ratio 0.13

Gamestop Corp Stock Return Volatility

Gamestop Corp historical daily return volatility represents how much of Gamestop Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 6.5184% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.1805% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Gamestop Corp Volatility

Volatility is a rate at which the price of Gamestop Corp 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 Gamestop Corp may increase or decrease. In other words, similar to Gamestop's beta indicator, it measures the risk of Gamestop Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gamestop Corp 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.
Last ReportedProjected for 2022
Market Capitalization7.5 B5.9 B
GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas. Gamestop Corp operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 12000 people.

Gamestop Corp Investment Opportunity

Gamestop Corp has a volatility of 6.52 and is 5.53 times more volatile than DOW. 56  of all equities and portfolios are less risky than Gamestop Corp. Compared to the overall equity markets, volatility of historical daily returns of Gamestop Corp is higher than 56 () of all global equities and portfolios over the last 90 days.
Use Gamestop Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Gamestop Corp to be traded at $38.09 in 90 days. .

Very weak diversification

The correlation between Gamestop Corp and DJI is Very weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gamestop Corp and DJI in the same portfolio, assuming nothing else is changed.

Gamestop Corp Additional Risk Indicators

The analysis of Gamestop Corp'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 Gamestop Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Gamestop Corp 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 Performance0.1879
Market Risk Adjusted Performance0.4447
Mean Deviation4.98
Semi Deviation4.44
Downside Deviation5.06
Coefficient Of Variation687.95
Standard Deviation6.62
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.

Gamestop Corp 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.
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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 Gamestop Corp 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. Gamestop Corp'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, Gamestop Corp'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 Gamestop Corp.
Please check Risk vs Return Analysis. Note that the Gamestop Corp information on this page should be used as a complementary analysis to other Gamestop Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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When running Gamestop Corp price analysis, check to measure Gamestop Corp'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 Gamestop Corp is operating at the current time. Most of Gamestop Corp's value examination focuses on studying past and present price action to predict the probability of Gamestop Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Gamestop Corp's price. Additionally, you may evaluate how the addition of Gamestop Corp to your portfolios can decrease your overall portfolio volatility.
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Is Gamestop Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Gamestop Corp. If investors know Gamestop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gamestop Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.69
Market Capitalization
12.3 B
Quarterly Revenue Growth YOY
0.08
Return On Assets
-0.0921
Return On Equity
-0.41
The market value of Gamestop Corp is measured differently than its book value, which is the value of Gamestop that is recorded on the company's balance sheet. Investors also form their own opinion of Gamestop Corp's value that differs from its market value or its book value, called intrinsic value, which is Gamestop Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Gamestop Corp's market value can be influenced by many factors that don't directly affect Gamestop Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Gamestop Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Gamestop Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gamestop Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.