Gcl Global Holdings Stock Volatility
| GCL Stock | 1.36 0.06 4.23% |
GCL Global Holdings holds Efficiency (Sharpe) Ratio of -0.23, which attests that the company had a -0.23 % return per unit of risk over the last 3 months. GCL Global Holdings exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out GCL Global's coefficient of variation of (425.45), and Standard Deviation of 5.63 to validate the risk estimate we provide. Key indicators related to GCL Global's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
GCL Global 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 GCL daily returns, and it is calculated using variance and standard deviation. We also use GCL's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of GCL Global volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of GCL Global at lower prices. For example, an investor can purchase GCL 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 together with GCL Stock
Moving against GCL Stock
| 0.83 | CAT | Caterpillar | PairCorr |
| 0.77 | AXP | American Express | PairCorr |
| 0.77 | GE | GE Aerospace | PairCorr |
| 0.75 | AA | Alcoa Corp | PairCorr |
| 0.72 | IBM | International Business | PairCorr |
| 0.72 | CSCO | Cisco Systems | PairCorr |
| 0.69 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.66 | MMM | 3M Company | PairCorr |
| 0.63 | MRK | Merck Company Aggressive Push | PairCorr |
GCL Global Market Sensitivity And Downside Risk
GCL Global's beta coefficient measures the volatility of GCL 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 GCL stock's returns against your selected market. In other words, GCL Global's beta of 1.69 provides an investor with an approximation of how much risk GCL Global stock can potentially add to one of your existing portfolios. GCL Global Holdings exhibits very low volatility with skewness of 0.33 and kurtosis of 0.62. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GCL Global'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 GCL Global'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 GCL Global Holdings Demand TrendCheck current 90 days GCL Global correlation with market (Dow Jones Industrial)GCL Beta |
GCL 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 | 5.63 |
It is essential to understand the difference between upside risk (as represented by GCL Global's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of GCL Global's daily returns or price. Since the actual investment returns on holding a position in gcl 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 GCL Global.
GCL Global Holdings Stock Volatility Analysis
Volatility refers to the frequency at which GCL Global stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with GCL Global's price changes. Investors will then calculate the volatility of GCL Global'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 GCL Global's volatility:
Historical Volatility
This type of stock volatility measures GCL Global's fluctuations based on previous trends. It's commonly used to predict GCL Global'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 GCL Global'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 GCL Global'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. GCL Global Holdings 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.
GCL Global Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.6873 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, GCL Global will likely underperform.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 GCL Global or Entertainment 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 GCL Global'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 GCL 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.
GCL Global Holdings 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 GCL Global 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.GCL Global Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of GCL Global is -425.45. The daily returns are distributed with a variance of 31.66 and standard deviation of 5.63. The mean deviation of GCL Global Holdings is currently at 4.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.66
α | Alpha over Dow Jones | -1.36 | |
β | Beta against Dow Jones | 1.69 | |
σ | Overall volatility | 5.63 | |
Ir | Information ratio | -0.24 |
GCL Global Stock Return Volatility
GCL Global historical daily return volatility represents how much of GCL Global stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 5.6267% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.6628% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About GCL Global Volatility
Volatility is a rate at which the price of GCL Global 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 GCL Global may increase or decrease. In other words, similar to GCL's beta indicator, it measures the risk of GCL Global and helps estimate the fluctuations that may happen in a short period of time. So if prices of GCL Global 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.3 ways to utilize GCL Global's volatility to invest better
Higher GCL Global's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of GCL Global Holdings 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. GCL Global Holdings 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 GCL Global Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in GCL Global'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 GCL Global's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
GCL Global Investment Opportunity
GCL Global Holdings has a volatility of 5.63 and is 8.53 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of GCL Global Holdings is higher than 50 percent of all global equities and portfolios over the last 90 days. You can use GCL Global Holdings to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of GCL Global to be traded at 1.292 in 90 days.Modest diversification
The correlation between GCL Global Holdings and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding GCL Global Holdings and DJI in the same portfolio, assuming nothing else is changed.
GCL Global Additional Risk Indicators
The analysis of GCL Global'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 GCL Global's investment and either accepting that risk or mitigating it. Along with some common measures of GCL Global 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 | (0.15) | |||
| Market Risk Adjusted Performance | (0.78) | |||
| Mean Deviation | 4.29 | |||
| Coefficient Of Variation | (425.45) | |||
| Standard Deviation | 5.63 | |||
| Variance | 31.66 | |||
| Information Ratio | (0.24) |
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.
GCL Global 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 GCL Global 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. GCL Global'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, GCL Global'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 GCL Global Holdings.
When determining whether GCL Global Holdings is a strong investment it is important to analyze GCL Global's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact GCL Global's future performance. For an informed investment choice regarding GCL Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GCL Global Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Stock 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 GCL Global. If investors know GCL 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 GCL Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of GCL Global Holdings is measured differently than its book value, which is the value of GCL that is recorded on the company's balance sheet. Investors also form their own opinion of GCL Global's value that differs from its market value or its book value, called intrinsic value, which is GCL Global'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 GCL Global's market value can be influenced by many factors that don't directly affect GCL Global'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 GCL Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if GCL Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GCL Global'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.