Graham Stock Volatility
| GHM Stock | USD 44.82 1.00 2.28% |
Graham appears to be very steady, given 3 months investment horizon. Graham holds Efficiency (Sharpe) Ratio of 0.22, which attests that the entity had a 0.22% return per unit of standard deviation over the last 3 months. By evaluating Graham's technical indicators, you can evaluate if the expected return of 0.7% is justified by implied risk. Please utilize Graham's market risk adjusted performance of 0.2351, and Risk Adjusted Performance of 0.1507 to validate if our risk estimates are consistent with your expectations. Key indicators related to Graham's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Graham 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 Graham daily returns, and it is calculated using variance and standard deviation. We also use Graham's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Graham volatility.
Graham |
ESG Sustainability
While most ESG disclosures are voluntary, Graham's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Graham's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Graham can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Graham at lower prices. For example, an investor can purchase Graham stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Graham's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Graham Stock
| 0.91 | CR | Crane Company | PairCorr |
| 0.82 | HI | Hillenbrand | PairCorr |
| 0.69 | IR | Ingersoll Rand | PairCorr |
| 0.85 | PH | Parker Hannifin | PairCorr |
| 0.71 | ENOV | Enovis Corp | PairCorr |
Moving against Graham Stock
| 0.89 | CYD | China Yuchai Interna | PairCorr |
| 0.61 | AOS | Smith AO | PairCorr |
| 0.43 | RR | Richtech Robotics Class | PairCorr |
| 0.4 | CVV | CVD Equipment | PairCorr |
Graham Market Sensitivity And Downside Risk
Graham's beta coefficient measures the volatility of Graham 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 Graham stock's returns against your selected market. In other words, Graham's beta of 2.65 provides an investor with an approximation of how much risk Graham stock can potentially add to one of your existing portfolios. Graham currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Graham'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 Graham'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 Graham Demand TrendCheck current 90 days Graham correlation with market (Dow Jones Industrial)Graham Beta |
Graham 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 | 3.18 |
It is essential to understand the difference between upside risk (as represented by Graham's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Graham's daily returns or price. Since the actual investment returns on holding a position in graham 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 Graham.
Graham Stock Volatility Analysis
Volatility refers to the frequency at which Graham stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Graham's price changes. Investors will then calculate the volatility of Graham'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 Graham's volatility:
Historical Volatility
This type of stock volatility measures Graham's fluctuations based on previous trends. It's commonly used to predict Graham'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 Graham'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 Graham'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. Graham 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.
Graham Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 2.6515 . 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, Graham 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 Graham or Machinery 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 Graham'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 Graham 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.
Graham has an alpha of 0.2586, implying that it can generate a 0.26 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Graham 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.Graham Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Graham is 450.97. The daily returns are distributed with a variance of 10.1 and standard deviation of 3.18. The mean deviation of Graham is currently at 1.95. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.26 | |
β | Beta against Dow Jones | 2.65 | |
σ | Overall volatility | 3.18 | |
Ir | Information ratio | 0.14 |
Graham Stock Return Volatility
Graham historical daily return volatility represents how much of Graham stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 3.1786% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Graham Volatility
Volatility is a rate at which the price of Graham 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 Graham may increase or decrease. In other words, similar to Graham's beta indicator, it measures the risk of Graham and helps estimate the fluctuations that may happen in a short period of time. So if prices of Graham 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 | -14.2 M | -15 M | |
| Market Cap | 38.1 M | 48.6 M |
Graham'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 Graham Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Graham's price varies over time.
3 ways to utilize Graham's volatility to invest better
Higher Graham's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Graham 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. Graham 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 Graham investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Graham'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 Graham's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Graham Investment Opportunity
Graham has a volatility of 3.18 and is 4.24 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Graham is lower than 28 percent of all global equities and portfolios over the last 90 days. You can use Graham to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Graham to be traded at $53.78 in 90 days.Poor diversification
The correlation between Graham and DJI is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Graham and DJI in the same portfolio, assuming nothing else is changed.
Graham Additional Risk Indicators
The analysis of Graham'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 Graham's investment and either accepting that risk or mitigating it. Along with some common measures of Graham 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 | 0.1507 | |||
| Market Risk Adjusted Performance | 0.2351 | |||
| Mean Deviation | 1.98 | |||
| Semi Deviation | 1.79 | |||
| Downside Deviation | 2.17 | |||
| Coefficient Of Variation | 534.54 | |||
| Standard Deviation | 3.24 |
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.
Graham 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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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 Graham 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. Graham'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, Graham'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 Graham.
When determining whether Graham is a strong investment it is important to analyze Graham'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 Graham's future performance. For an informed investment choice regarding Graham 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 Graham. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. To learn how to invest in Graham Stock, please use our How to Invest in Graham guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Industrial Machinery & Supplies & Components 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 Graham. If investors know Graham 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 Graham 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 6.81 | Earnings Share 0.7 | Revenue Per Share 18.113 | Quarterly Revenue Growth 0.188 | Return On Assets 0.0251 |
The market value of Graham is measured differently than its book value, which is the value of Graham that is recorded on the company's balance sheet. Investors also form their own opinion of Graham's value that differs from its market value or its book value, called intrinsic value, which is Graham'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 Graham's market value can be influenced by many factors that don't directly affect Graham'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 Graham's value and its price as these two are different measures arrived at by different means. Investors typically determine if Graham is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Graham'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.