Talen Energy Stock Volatility
| TLNE Stock | 369.03 1.80 0.49% |
Talen Energy owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0487, which indicates the firm had a -0.0487 % return per unit of risk over the last 3 months. Talen Energy exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Talen Energy's Variance of 10.35, risk adjusted performance of (0.03), and Coefficient Of Variation of (1,823) to confirm the risk estimate we provide.
Talen |
Talen Energy OTC 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 Talen daily returns, and it is calculated using variance and standard deviation. We also use Talen's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Talen Energy volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Talen Energy 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 Talen Energy at lower prices to lower their average cost per share. Similarly, when the prices of Talen Energy's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to Talen Energy's market risk premium analysis include:
Moving against Talen OTC Stock
| 0.84 | CSCO | Cisco Systems | PairCorr |
| 0.71 | GOOG | Alphabet Class C Aggressive Push | PairCorr |
| 0.71 | F | Ford Motor | PairCorr |
| 0.69 | DD | Dupont De Nemours | PairCorr |
| 0.66 | AAPL | Apple Inc | PairCorr |
| 0.63 | WSFS | WSFS Financial | PairCorr |
| 0.62 | CAT | Caterpillar | PairCorr |
| 0.6 | AXP | American Express | PairCorr |
| 0.59 | ATI | Allegheny Technologies | PairCorr |
| 0.59 | MCD | McDonalds | PairCorr |
Talen Energy Market Sensitivity And Downside Risk
Talen Energy's beta coefficient measures the volatility of Talen otc 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 Talen otc stock's returns against your selected market. In other words, Talen Energy's beta of 0.11 provides an investor with an approximation of how much risk Talen Energy otc stock can potentially add to one of your existing portfolios. Talen Energy exhibits very low volatility with skewness of -0.08 and kurtosis of -0.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Talen Energy's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Talen Energy's otc 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 Talen Energy Demand TrendCheck current 90 days Talen Energy correlation with market (Dow Jones Industrial)Talen Energy Volatility and Downside Risk
Talen 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.
Talen Energy OTC Stock Volatility Analysis
Volatility refers to the frequency at which Talen Energy otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Talen Energy's price changes. Investors will then calculate the volatility of Talen Energy's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Talen Energy's volatility:
Historical Volatility
This type of otc volatility measures Talen Energy's fluctuations based on previous trends. It's commonly used to predict Talen Energy's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Talen Energy's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Talen Energy'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. Talen Energy 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.
Talen Energy Projected Return Density Against Market
Given the investment horizon of 90 days Talen Energy has a beta of 0.1072 . This usually implies as returns on the market go up, Talen Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Talen Energy 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 Talen Energy or Talen 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 Talen Energy's price will be affected by overall otc 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 Talen otc'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.
Talen Energy has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Talen Energy Price Volatility?
Several factors can influence a otc'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.Talen Energy OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Talen Energy is -2052.06. The daily returns are distributed with a variance of 9.38 and standard deviation of 3.06. The mean deviation of Talen Energy is currently at 2.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | -0.2 | |
β | Beta against Dow Jones | 0.11 | |
σ | Overall volatility | 3.06 | |
Ir | Information ratio | -0.08 |
Talen Energy OTC Stock Return Volatility
Talen Energy historical daily return volatility represents how much of Talen Energy otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.0619% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7072% 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
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Risk-Adjusted Indicators
There is a big difference between Talen OTC Stock performing well and Talen Energy OTC Stock 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 Talen Energy'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CPWPF | 0.07 | 0.02 | 0.00 | (0.68) | 0.00 | 0.00 | 2.43 | |||
| CDUUF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| AEMMF | 0.76 | 0.40 | 0.00 | (1.40) | 0.00 | 0.00 | 23.81 | |||
| HRASF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| NOSPF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| BRENF | 0.08 | 0.03 | 0.00 | 0.89 | 0.00 | 0.00 | 2.41 | |||
| CTPTY | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| CTPZY | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| AEMMY | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| MGHTF | 3.04 | 0.63 | 0.00 | 0.47 | 0.00 | 0.00 | 96.06 |
Talen Energy Investment Opportunity
Talen Energy has a volatility of 3.06 and is 4.31 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Talen Energy is lower than 27 percent of all global equities and portfolios over the last 90 days. You can use Talen Energy to protect your portfolios against small market fluctuations. The otc stock experiences a normal downward fluctuation but is a risky buy. Check odds of Talen Energy to be traded at 365.34 in 90 days.Significant diversification
The correlation between Talen Energy and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Talen Energy and DJI in the same portfolio, assuming nothing else is changed.
Talen Energy Additional Risk Indicators
The analysis of Talen Energy'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 Talen Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Talen Energy otc 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 | (0.03) | |||
| Market Risk Adjusted Performance | (1.73) | |||
| Mean Deviation | 2.49 | |||
| Coefficient Of Variation | (1,823) | |||
| Standard Deviation | 3.22 | |||
| Variance | 10.35 | |||
| Information Ratio | (0.08) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Talen Energy 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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| Walker Dunlop vs. Talen Energy | ||
| Citigroup vs. Talen Energy | ||
| Visa vs. Talen Energy | ||
| GM vs. Talen Energy | ||
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 Talen Energy 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. Talen Energy'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, Talen Energy'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 Talen Energy.
Complementary Tools for Talen OTC Stock analysis
When running Talen Energy's price analysis, check to measure Talen Energy'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 Talen Energy is operating at the current time. Most of Talen Energy's value examination focuses on studying past and present price action to predict the probability of Talen Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Talen Energy's price. Additionally, you may evaluate how the addition of Talen Energy to your portfolios can decrease your overall portfolio volatility.
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