Mcgraw Hill Stock Volatility
| MH Stock | 13.67 0.64 4.47% |
McGraw Hill has Sharpe Ratio of -0.0581, which conveys that the firm had a -0.0581 % return per unit of risk over the last 3 months. McGraw Hill exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify McGraw Hill's risk adjusted performance of 0.0805, and Mean Deviation of 3.02 to check out the risk estimate we provide.
Sharpe Ratio = -0.0581
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | MH |
Based on monthly moving average McGraw Hill is not performing at its full potential. However, 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 McGraw Hill by adding McGraw Hill to a well-diversified portfolio.
Key indicators related to McGraw Hill's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
McGraw Hill 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 McGraw daily returns, and it is calculated using variance and standard deviation. We also use McGraw's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of McGraw Hill volatility.
ESG Sustainability
While most ESG disclosures are voluntary, McGraw Hill's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McGraw Hill'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 McGraw Hill at lower prices. For example, an investor can purchase McGraw 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. Main indicators related to McGraw Hill's market risk premium analysis include:
Beta 0.56 | Alpha 0.39 | Risk 3.71 | Sharpe Ratio (0.06) | Expected Return (0.22) |
Moving together with McGraw Stock
Moving against McGraw Stock
| 0.55 | PU11 | Social Chain | PairCorr |
| 0.54 | LOCAL | Solocal Group SA Earnings Call Today | PairCorr |
| 0.48 | SY | So Young International Downward Rally | PairCorr |
| 0.45 | DHX | DHI Group Tech Boost | PairCorr |
| 0.42 | BILD | Builddirect Tehcnologies | PairCorr |
| 0.34 | WB | Weibo Corp | PairCorr |
McGraw Hill Market Sensitivity And Downside Risk
McGraw Hill's beta coefficient measures the volatility of McGraw 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 McGraw stock's returns against your selected market. In other words, McGraw Hill's beta of 0.56 provides an investor with an approximation of how much risk McGraw Hill stock can potentially add to one of your existing portfolios. McGraw Hill 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 McGraw Hill'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 McGraw Hill'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 McGraw Hill Demand TrendCheck current 90 days McGraw Hill correlation with market (Dow Jones Industrial)McGraw Hill Volatility and Downside Risk
McGraw 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.
McGraw Hill Stock Volatility Analysis
Volatility refers to the frequency at which McGraw Hill stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with McGraw Hill's price changes. Investors will then calculate the volatility of McGraw Hill'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 McGraw Hill's volatility:
Historical Volatility
This type of stock volatility measures McGraw Hill's fluctuations based on previous trends. It's commonly used to predict McGraw Hill'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 McGraw Hill'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 McGraw Hill'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. McGraw Hill 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.
McGraw Hill Projected Return Density Against Market
Allowing for the 90-day total investment horizon McGraw Hill has a beta of 0.5552 . This indicates as returns on the market go up, McGraw Hill average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding McGraw Hill will be expected to be much smaller as well.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 McGraw Hill or Interactive Media & 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 McGraw Hill'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 McGraw 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.
Predicted Return Density |
| Returns |
What Drives a McGraw Hill 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.McGraw Hill Stock Risk Measures
Allowing for the 90-day total investment horizon the coefficient of variation of McGraw Hill is -1721.34. The daily returns are distributed with a variance of 13.73 and standard deviation of 3.71. The mean deviation of McGraw Hill is currently at 2.4. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.39 | |
β | Beta against Dow Jones | 0.56 | |
σ | Overall volatility | 3.71 | |
Ir | Information ratio | 0.07 |
McGraw Hill Stock Return Volatility
McGraw Hill historical daily return volatility represents how much of McGraw Hill stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 3.7052% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7551% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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
| High negative correlations
|
Risk-Adjusted Indicators
There is a big difference between McGraw Stock performing well and McGraw Hill 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 McGraw Hill'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| PRDO | 1.18 | 0.00 | (0.01) | 0.06 | 1.60 | 2.72 | 11.37 | |||
| STRA | 1.42 | (0.11) | 0.00 | (0.03) | 0.00 | 2.18 | 14.59 | |||
| COUR | 1.79 | (0.54) | 0.00 | (0.76) | 0.00 | 2.68 | 14.34 | |||
| UNFI | 2.15 | 0.03 | 0.00 | 0.12 | 3.27 | 3.75 | 13.48 | |||
| UTI | 2.56 | 0.00 | 0.01 | 0.06 | 4.74 | 4.91 | 22.67 | |||
| SMPL | 1.61 | (0.28) | 0.00 | (2.81) | 0.00 | 3.63 | 12.40 | |||
| AFYA | 1.36 | (0.06) | (0.03) | (0.01) | 2.28 | 2.32 | 9.44 | |||
| SAM | 1.49 | 0.31 | 0.16 | 1.41 | 1.41 | 3.38 | 7.94 | |||
| PXED | 3.26 | (0.23) | 0.00 | (0.10) | 0.00 | 6.27 | 19.88 | |||
| GOTU | 1.90 | (0.38) | 0.00 | (0.46) | 0.00 | 4.96 | 15.39 |
About McGraw Hill Volatility
Volatility is a rate at which the price of McGraw Hill 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 McGraw Hill may increase or decrease. In other words, similar to McGraw's beta indicator, it measures the risk of McGraw Hill and helps estimate the fluctuations that may happen in a short period of time. So if prices of McGraw Hill 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 | ||
| Selling And Marketing Expenses | 437.2 M | 411.4 M |
McGraw Hill'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 McGraw Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much McGraw Hill's price varies over time.
3 ways to utilize McGraw Hill's volatility to invest better
Higher McGraw Hill's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of McGraw Hill 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. McGraw Hill 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 McGraw Hill investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in McGraw Hill'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 McGraw Hill's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
McGraw Hill Investment Opportunity
McGraw Hill has a volatility of 3.71 and is 4.88 times more volatile than Dow Jones Industrial. 33 percent of all equities and portfolios are less risky than McGraw Hill. You can use McGraw Hill to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of McGraw Hill to be traded at 12.99 in 90 days.Very good diversification
The correlation between McGraw Hill and DJI is -0.5 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding McGraw Hill and DJI in the same portfolio, assuming nothing else is changed.
McGraw Hill Additional Risk Indicators
The analysis of McGraw Hill'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 McGraw Hill's investment and either accepting that risk or mitigating it. Along with some common measures of McGraw Hill 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 | 0.0805 | |||
| Market Risk Adjusted Performance | 0.7681 | |||
| Mean Deviation | 3.02 | |||
| Semi Deviation | 3.18 | |||
| Downside Deviation | 3.43 | |||
| Coefficient Of Variation | 1118.09 | |||
| Standard Deviation | 4.82 |
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.
McGraw Hill 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 McGraw Hill 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. McGraw Hill'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, McGraw Hill'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 McGraw Hill.
Complementary Tools for McGraw Stock analysis
When running McGraw Hill's price analysis, check to measure McGraw Hill'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 McGraw Hill is operating at the current time. Most of McGraw Hill's value examination focuses on studying past and present price action to predict the probability of McGraw Hill's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McGraw Hill's price. Additionally, you may evaluate how the addition of McGraw Hill to your portfolios can decrease your overall portfolio volatility.
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |