A Measure of Market Volatility You calculate stock volatility or market volatility by finding the standard deviation of market price changes over a time period. A standard deviation indicates the degree to which stock price differs from an average value. The greater the standard deviation, the more...
also known as the “fear index” is the most well-known measure of stock market volatility. It gauges investors’ expectations about the movement of stock prices over the next 30 days based on S&P 500 options trading. The VIX
Tradingvolumeis a measure of how much a givenfinancial assethas traded in a period. Volume for stocks is measured by the number of shares traded. Volume for futures and options is based on how many contracts have changed hands. Investors and day traders look to volume to determine liquidity ...
Of course, not everyone is eager to follow Jim Cramer's advice. That's where the Inverse Cramer ETF comes into play. Keep in mind that it isn't the exact opposite of LJIM because it doesn't bet against the same stocks in equal measure. Instead, it either holds short positions...
Price volatility is often considered a common measure of risk, but a comparatively lower investment size can offset price volatility. So, although blue-chip, dividend-paying stocks may seem much less risky than small-cap growth stocks orcryptocurrencyinvestments, the actual risk may have more to ...
in this case yielding a PEG of 1. Stock B, with its P/E of 15, has forward annual earnings growth estimated at 20% over the next five years, for a PEG of 0.75. Stock B has a lower PEG than stock A, meaning that by this measure, it's actually the better value. Generally, a ...
One measure of a bear market is a price decline of at least 20% over a two-month period. European stockindexhasopenedto apositivestart this week. Hong Kong's Hang Sengindexplummetedto a 19-month low afterdeclinesin US markets. Expertspredictthebull marketwill slow down after three years. ...
Guide to Bear Markets How does your retirement savings measure up?. Image Source/Getty Images America's increasing reliance on401(k) plansand otherdefined-contributionretirement accounts is a double-edged sword. On the one hand, because investors (and not pension managers) decide how the funds ...
To measure their portfolio's performance more accurately, investors typically use one of two methods: TWR or money-weighted returns (MWR). Think of TWR as measuring how well your investments performed, regardless of when you added or withdrew money, while MWR considers the timing and size o...
To calculate beta, investors divide the covariance of an individual stock (say,Apple) with the overall market, often represented by theStandard & Poor’s 500 Index, by the variance of the market’s returns compared to its average return. Covariance is a measure of how two securities move in...