Gladstone Investment Stock Volatility
| GAINL Stock | USD 25.73 0.05 0.19% |
As of now, Gladstone Stock is very steady. Gladstone Investment holds Efficiency (Sharpe) Ratio of 0.0351, which attests that the entity had a 0.0351% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for Gladstone Investment, which you can use to evaluate the volatility of the firm. Please check out Gladstone Investment's market risk adjusted performance of (0.27), and Risk Adjusted Performance of 0.0146 to validate if the risk estimate we provide is consistent with the expected return of 0.0206%. Key indicators related to Gladstone Investment's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Gladstone Investment 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 Gladstone daily returns, and it is calculated using variance and standard deviation. We also use Gladstone's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gladstone Investment volatility.
Gladstone |
ESG Sustainability
While most ESG disclosures are voluntary, Gladstone Investment's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Gladstone Investment's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Gladstone Investment at lower prices. For example, an investor can purchase Gladstone stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against Gladstone Stock
Gladstone Investment Market Sensitivity And Downside Risk
Gladstone Investment's beta coefficient measures the volatility of Gladstone stock compared to the systematic risk of the entire 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 Gladstone stock's returns against your selected market. In other words, Gladstone Investment's beta of -0.0123 provides an investor with an approximation of how much risk Gladstone Investment stock can potentially add to one of your existing portfolios. Gladstone Investment exhibits very low volatility with skewness of 0.45 and kurtosis of -0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gladstone Investment'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 Gladstone Investment'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 financial instruments as prices fall.
3 Months Beta |Analyze Gladstone Investment Demand TrendCheck current 90 days Gladstone Investment correlation with market (Dow Jones Industrial)Gladstone Beta |
Gladstone standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 0.59 |
It is essential to understand the difference between upside risk (as represented by Gladstone Investment's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gladstone Investment's daily returns or price. Since the actual investment returns on holding a position in gladstone 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 Gladstone Investment.
Gladstone Investment Stock Volatility Analysis
Volatility refers to the frequency at which Gladstone Investment stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gladstone Investment's price changes. Investors will then calculate the volatility of Gladstone Investment'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 Gladstone Investment's volatility:
Historical Volatility
This type of stock volatility measures Gladstone Investment's fluctuations based on previous trends. It's commonly used to predict Gladstone Investment'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 Gladstone Investment's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Gladstone Investment'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. Gladstone Investment 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.
Gladstone Investment Projected Return Density Against Market
Assuming the 90 days horizon Gladstone Investment has a beta of -0.0123 . This usually indicates as returns on the benchmark increase, returns on holding Gladstone Investment are expected to decrease at a much lower rate. During a bear market, however, Gladstone Investment 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 Gladstone Investment or Financial Services 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 Gladstone Investment'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 Gladstone 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.
Gladstone Investment has an alpha of 0.005, implying that it can generate a 0.005 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Gladstone Investment Price Volatility?
Several factors can influence a stock'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.Gladstone Investment Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Gladstone Investment is 2847.95. The daily returns are distributed with a variance of 0.35 and standard deviation of 0.59. The mean deviation of Gladstone Investment is currently at 0.46. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | -0.01 | |
σ | Overall volatility | 0.59 | |
Ir | Information ratio | -0.2 |
Gladstone Investment Stock Return Volatility
Gladstone Investment historical daily return volatility represents how much of Gladstone Investment stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 0.5881% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7716% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Gladstone Investment Volatility
Volatility is a rate at which the price of Gladstone Investment 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 Gladstone Investment may increase or decrease. In other words, similar to Gladstone's beta indicator, it measures the risk of Gladstone Investment and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gladstone Investment 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 Reported | Projected for Next Year | ||
| Market Cap | 483.6 M | 507.7 M |
Gladstone Investment's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Gladstone Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Gladstone Investment's price varies over time.
3 ways to utilize Gladstone Investment's volatility to invest better
Higher Gladstone Investment's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Gladstone Investment stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Gladstone Investment stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Gladstone Investment investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Gladstone Investment's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Gladstone Investment's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Gladstone Investment Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.77 and is 1.31 times more volatile than Gladstone Investment. Compared to the overall equity markets, volatility of historical daily returns of Gladstone Investment is lower than 5 percent of all global equities and portfolios over the last 90 days. You can use Gladstone Investment to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Gladstone Investment to be traded at $25.47 in 90 days.Good diversification
The correlation between Gladstone Investment and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and DJI in the same portfolio, assuming nothing else is changed.
Gladstone Investment Additional Risk Indicators
The analysis of Gladstone Investment'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 Gladstone Investment's investment and either accepting that risk or mitigating it. Along with some common measures of Gladstone Investment 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 Performance | 0.0146 | |||
| Market Risk Adjusted Performance | (0.27) | |||
| Mean Deviation | 0.4529 | |||
| Semi Deviation | 0.4581 | |||
| Downside Deviation | 0.5207 | |||
| Coefficient Of Variation | 4306.04 | |||
| Standard Deviation | 0.5805 |
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.
Gladstone Investment 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 Gladstone Investment 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. Gladstone Investment'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, Gladstone Investment'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 Gladstone Investment.
When determining whether Gladstone Investment offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Gladstone Investment's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Gladstone Investment Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Gladstone Investment Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gladstone Investment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy Gladstone Stock please use our How to buy in Gladstone Stock guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Specialized Finance space 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 Gladstone Investment. If investors know Gladstone 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 Gladstone Investment 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 1.2 K | Dividend Share 1.59 | Earnings Share 2.697 | Revenue Per Share 1.926 | Quarterly Revenue Growth 0.684 |
The market value of Gladstone Investment is measured differently than its book value, which is the value of Gladstone that is recorded on the company's balance sheet. Investors also form their own opinion of Gladstone Investment's value that differs from its market value or its book value, called intrinsic value, which is Gladstone Investment'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 Gladstone Investment's market value can be influenced by many factors that don't directly affect Gladstone Investment'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 Gladstone Investment's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gladstone Investment is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gladstone Investment'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.