GENERAL ELEC CAP Volatility

36966TKG6   94.33  1.69  1.76%   
GENERAL appears to be very steady, given 3 months investment horizon. GENERAL ELEC CAP holds Efficiency (Sharpe) Ratio of 0.11, which attests that the entity had 0.11% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a bond is to use all available market data together with bond-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for GENERAL ELEC CAP, which you can use to evaluate the future volatility of the entity. Please utilize GENERAL's Market Risk Adjusted Performance of (0.60), risk adjusted performance of 0.0376, and Semi Deviation of 2.47 to validate if our risk estimates are consistent with your expectations.
  
GENERAL Bond 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 GENERAL daily returns, and it is calculated using variance and standard deviation. We also use GENERAL's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of GENERAL volatility.

30 Days Market Risk

Very steady

Chance of Distress

30 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as GENERAL 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 GENERAL at lower prices. For example, an investor can purchase GENERAL 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 GENERAL'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.

GENERAL Market Sensitivity And Downside Risk

GENERAL's beta coefficient measures the volatility of GENERAL bond 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 GENERAL bond's returns against your selected market. In other words, GENERAL's beta of -0.0965 provides an investor with an approximation of how much risk GENERAL bond can potentially add to one of your existing portfolios.
GENERAL ELEC CAP currently demonstrates below-average downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of 0.08. However, we advise investors to further question GENERAL ELEC CAP expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GENERAL's bond risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact GENERAL's bond 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.
3 Months Beta |Analyze GENERAL ELEC CAP Demand Trend
Check current 90 days GENERAL correlation with market (NYSE Composite)

GENERAL Beta

    
  -0.0965  
GENERAL 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

    
  2.34  
It is essential to understand the difference between upside risk (as represented by GENERAL's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of GENERAL's daily returns or price. Since the actual investment returns on holding a position in general bond 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 GENERAL.

GENERAL ELEC CAP Bond Volatility Analysis

Volatility refers to the frequency at which GENERAL bond price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with GENERAL's price changes. Investors will then calculate the volatility of GENERAL's bond to predict their future moves. A bond that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A bond with relatively stable price changes has low volatility. A highly volatile bond 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 GENERAL's volatility:

Historical Volatility

This type of bond volatility measures GENERAL's fluctuations based on previous trends. It's commonly used to predict GENERAL's future behavior based on its past. However, it cannot conclusively determine the future direction of the bond.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for GENERAL's current market price. This means that the bond will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on GENERAL's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. GENERAL ELEC CAP 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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GENERAL Projected Return Density Against Market

Assuming the 90 days trading horizon GENERAL ELEC CAP has a beta of -0.0965 . This usually implies as returns on benchmark increase, returns on holding GENERAL are expected to decrease at a much lower rate. During the bear market, however, GENERAL ELEC CAP is likely to outperform the market.
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 GENERAL or Credit/Financing 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 GENERAL's price will be affected by overall bond 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 GENERAL bond'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 0.0764, implying that it can generate a 0.0764 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
GENERAL's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how general bond'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 GENERAL Price Volatility?

Several factors can influence a bond's market 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.

GENERAL Bond 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 GENERAL or Credit/Financing 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 GENERAL's price will be affected by overall bond 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 GENERAL bond'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. Assuming the 90 days trading horizon the coefficient of variation of GENERAL is 910.45. The daily returns are distributed with a variance of 5.49 and standard deviation of 2.34. The mean deviation of GENERAL ELEC CAP is currently at 1.94. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.12
α
Alpha over NYSE Composite
0.08
β
Beta against NYSE Composite-0.1
σ
Overall volatility
2.34
Ir
Information ratio -0.05

GENERAL Bond Return Volatility

GENERAL historical daily return volatility represents how much of GENERAL bond's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. GENERAL ELEC CAP accepts 2.3435% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 1.1384% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About GENERAL Volatility

Volatility is a rate at which the price of GENERAL 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 GENERAL may increase or decrease. In other words, similar to GENERAL's beta indicator, it measures the risk of GENERAL and helps estimate the fluctuations that may happen in a short period of time. So if prices of GENERAL 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.

GENERAL Investment Opportunity

GENERAL ELEC CAP has a volatility of 2.34 and is 2.05 times more volatile than NYSE Composite. 20  of all equities and portfolios are less risky than GENERAL. Compared to the overall equity markets, volatility of historical daily returns of GENERAL ELEC CAP is lower than 20 () of all global equities and portfolios over the last 90 days. Use GENERAL ELEC CAP to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The bond experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of GENERAL to be traded at 91.5 in 90 days.

Good diversification

The correlation between GENERAL ELEC CAP CORP INTERNOT and NYA is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP CORP INTERNOT and NYA in the same portfolio, assuming nothing else is changed.

GENERAL Additional Risk Indicators

The analysis of GENERAL'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 GENERAL's investment and either accepting that risk or mitigating it. Along with some common measures of GENERAL bond'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.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential bonds, we recommend comparing similar bonds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

GENERAL 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.
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 GENERAL 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. GENERAL'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, GENERAL'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 GENERAL ELEC CAP.
Also, please take a look at World Market Map. Note that the GENERAL ELEC CAP information on this page should be used as a complementary analysis to other GENERAL'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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When running GENERAL ELEC CAP price analysis, check to measure GENERAL'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 GENERAL is operating at the current time. Most of GENERAL's value examination focuses on studying past and present price action to predict the probability of GENERAL's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move GENERAL's price. Additionally, you may evaluate how the addition of GENERAL to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between GENERAL's value and its price as these two are different measures arrived at by different means. Investors typically determine GENERAL value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GENERAL'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.