Gsk Plc Stock Volatility
| GLAXF Stock | USD 25.87 0.88 3.52% |
GSK Plc appears to be not too volatile, given 3 months investment horizon. GSK plc holds Efficiency (Sharpe) Ratio of 0.0785, which attests that the entity had a 0.0785 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for GSK plc, which you can use to evaluate the volatility of the firm. Please utilize GSK Plc's Market Risk Adjusted Performance of (1.39), semi deviation of 2.81, and Risk Adjusted Performance of 0.086 to validate if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0785
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Based on monthly moving average GSK Plc is performing at about 6% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of GSK Plc by adding it to a well-diversified portfolio.
Key indicators related to GSK Plc's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
GSK Plc Pink Sheet 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 GSK daily returns, and it is calculated using variance and standard deviation. We also use GSK's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of GSK Plc volatility.
GSK |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as GSK Plc can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of GSK Plc at lower prices to lower their average cost per share. Similarly, when the prices of GSK Plc's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to GSK Plc's market risk premium analysis include:
Beta (0.26) | Alpha 0.38 | Risk 3.36 | Sharpe Ratio 0.0785 | Expected Return 0.26 |
Moving together with GSK Pink Sheet
| 0.64 | LLY | Eli Lilly | PairCorr |
| 0.75 | JNJ | Johnson Johnson Sell-off Trend | PairCorr |
| 0.74 | AZN | AstraZeneca PLC | PairCorr |
| 0.76 | NVS | Novartis AG ADR Earnings Call This Week | PairCorr |
| 0.79 | MRK | Merck Company Earnings Call This Week | PairCorr |
| 0.78 | RHHBF | Roche Holding AG | PairCorr |
| 0.79 | RHHBY | Roche Holding | PairCorr |
| 0.79 | RHHVF | Roche Holding AG | PairCorr |
| 0.75 | AZNCF | AstraZeneca PLC | PairCorr |
| 0.64 | AXIA | AXIA Energia Symbol Change | PairCorr |
| 0.74 | KGC | Kinross Gold | PairCorr |
| 0.67 | ACN | Accenture plc | PairCorr |
Moving against GSK Pink Sheet
| 0.73 | ATMV | ATMV Old Symbol Change | PairCorr |
| 0.37 | MMC | MMC Old Symbol Change | PairCorr |
GSK Plc Market Sensitivity And Downside Risk
GSK Plc's beta coefficient measures the volatility of GSK pink sheet 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 GSK pink sheet's returns against your selected market. In other words, GSK Plc's beta of -0.26 provides an investor with an approximation of how much risk GSK Plc pink sheet can potentially add to one of your existing portfolios. GSK plc shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GSK Plc's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact GSK Plc's pink sheet 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 GSK plc Demand TrendCheck current 90 days GSK Plc correlation with market (Dow Jones Industrial)GSK Plc Volatility and Downside Risk
GSK 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.
GSK plc Pink Sheet Volatility Analysis
Volatility refers to the frequency at which GSK Plc pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with GSK Plc's price changes. Investors will then calculate the volatility of GSK Plc's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 GSK Plc's volatility:
Historical Volatility
This type of pink sheet volatility measures GSK Plc's fluctuations based on previous trends. It's commonly used to predict GSK Plc's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for GSK Plc's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on GSK Plc'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. GSK plc 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.
GSK Plc Projected Return Density Against Market
Assuming the 90 days horizon GSK plc has a beta of -0.2641 . This usually indicates as returns on the benchmark increase, returns on holding GSK Plc are expected to decrease at a much lower rate. During a bear market, however, GSK plc 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 GSK Plc or Healthcare 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 GSK Plc's price will be affected by overall pink sheet 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 GSK pink sheet'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.
GSK plc has an alpha of 0.3787, implying that it can generate a 0.38 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a GSK Plc Price Volatility?
Several factors can influence a pink sheet'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.GSK Plc Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of GSK Plc is 1274.29. The daily returns are distributed with a variance of 11.3 and standard deviation of 3.36. The mean deviation of GSK plc is currently at 2.3. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.38 | |
β | Beta against Dow Jones | -0.26 | |
σ | Overall volatility | 3.36 | |
Ir | Information ratio | 0.1 |
GSK Plc Pink Sheet Return Volatility
GSK Plc historical daily return volatility represents how much of GSK Plc pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.3618% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7413% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between GSK Pink Sheet performing well and GSK Plc Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze GSK Plc's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CHGCY | 1.69 | 0.36 | 0.18 | (7.06) | 1.46 | 3.99 | 11.05 | |||
| SNYNF | 1.14 | (0.19) | 0.00 | (0.42) | 0.00 | 2.63 | 8.58 | |||
| CHGCF | 2.98 | 0.53 | 0.12 | (0.72) | 3.43 | 7.70 | 18.43 | |||
| CSLLY | 1.43 | (0.11) | 0.00 | (0.52) | 0.00 | 2.53 | 15.28 | |||
| DSNKY | 1.94 | (0.53) | 0.00 | (0.49) | 0.00 | 3.96 | 10.19 | |||
| MKGAF | 2.64 | 0.25 | 0.07 | 0.65 | 3.25 | 6.98 | 14.30 | |||
| MKKGY | 1.26 | 0.14 | 0.09 | 0.18 | 1.37 | 2.89 | 7.85 | |||
| DSKYF | 3.01 | (0.43) | 0.00 | (0.64) | 0.00 | 6.37 | 17.89 | |||
| OTSKY | 1.46 | 0.12 | 0.08 | 0.19 | 1.38 | 3.41 | 8.24 | |||
| SOAGY | 1.38 | (0.02) | 0.00 | 0.02 | 1.53 | 3.54 | 8.82 |
About GSK Plc Volatility
Volatility is a rate at which the price of GSK Plc 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 GSK Plc may increase or decrease. In other words, similar to GSK's beta indicator, it measures the risk of GSK Plc and helps estimate the fluctuations that may happen in a short period of time. So if prices of GSK Plc 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.GSK plc, together with its subsidiaries, engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the United States, and internationally. GSK plc was founded in 1715 and is headquartered in Brentford, the United Kingdom. Glaxosmithkline Plc is traded on OTC Exchange in the United States.
GSK Plc'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 GSK Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much GSK Plc's price varies over time.
3 ways to utilize GSK Plc's volatility to invest better
Higher GSK Plc's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of GSK plc 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. GSK plc 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 GSK plc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in GSK Plc'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 GSK Plc's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
GSK Plc Investment Opportunity
GSK plc has a volatility of 3.36 and is 4.54 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of GSK plc is lower than 30 percent of all global equities and portfolios over the last 90 days. You can use GSK plc to enhance the returns of your portfolios. The pink sheet experiences an expected bullish sentiment for its category. Check odds of GSK Plc to be traded at $31.04 in 90 days.Poor diversification
The correlation between GSK plc and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding GSK plc and DJI in the same portfolio, assuming nothing else is changed.
GSK Plc Additional Risk Indicators
The analysis of GSK Plc'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 GSK Plc's investment and either accepting that risk or mitigating it. Along with some common measures of GSK Plc pink sheet'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 | 0.086 | |||
| Market Risk Adjusted Performance | (1.39) | |||
| Mean Deviation | 2.5 | |||
| Semi Deviation | 2.81 | |||
| Downside Deviation | 4.34 | |||
| Coefficient Of Variation | 926.07 | |||
| Standard Deviation | 3.51 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
GSK Plc 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 GSK Plc 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. GSK Plc'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, GSK Plc'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 GSK plc.
Complementary Tools for GSK Pink Sheet analysis
When running GSK Plc's price analysis, check to measure GSK Plc'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 GSK Plc is operating at the current time. Most of GSK Plc's value examination focuses on studying past and present price action to predict the probability of GSK Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GSK Plc's price. Additionally, you may evaluate how the addition of GSK Plc to your portfolios can decrease your overall portfolio volatility.
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