# General Stock Volatility

GD | Stock | ## USD 225.85 2.91 1.27% |

We consider General Dynamics very steady. General Dynamics Corp holds Efficiency (Sharpe) Ratio of 0.0103, which attests that the entity had 0.0103% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for General Dynamics Corp, which you can use to evaluate the future volatility of the firm. Please check out General Dynamics risk adjusted performance of (0.003707), and Market Risk Adjusted Performance of (0.007704) to validate if the risk estimate we provide is consistent with the expected return of 0.0162%.

General |

General Dynamics 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 General daily returns, and it is calculated using variance and standard deviation. We also use General's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of General Dynamics volatility.

### 30 Days Market Risk

### Chance of Distress

### 30 Days Economic Sensitivity

### ESG Sustainability

While most ESG disclosures are voluntary, General Dynamics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to General Dynamics' managers and investors.Environment Score | Governance Score | Social Score |

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as General Dynamics 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 General Dynamics at lower prices. For example, an investor can purchase General 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 General Dynamics' 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 General Dynamics

## General Dynamics Market Sensitivity And Downside Risk

General Dynamics' beta coefficient measures the volatility of General stock compared to the systematic risk of the entire stock 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 General stock's returns against your selected market. In other words, General Dynamics's beta of 0.97 provides an investor with an approximation of how much risk General Dynamics stock can potentially add to one of your existing portfolios.

General Dynamics Corp exhibits very low volatility with skewness of -0.3 and kurtosis of 0.24. However, we advise investors to further study General Dynamics Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure General Dynamics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact General Dynamics' 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 stocks as prices fall.

General standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.

### General Dynamics Implied Volatility

General Dynamics' implied volatility exposes the market's sentiment of General Dynamics Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if General Dynamics' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that General Dynamics stock will not fluctuate a lot when General Dynamics' options are near their expiration.

3 Months Beta |Analyze General Dynamics Corp Demand TrendCheck current 90 days General Dynamics correlation with market (DOW)## General Beta |

## Standard Deviation | 1.56 |

It is essential to understand the difference between upside risk (as represented by General Dynamics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of General Dynamics stock's daily returns or price. Since the actual investment returns on holding a position in General Dynamics 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 General Dynamics.

## Using General Put Option to Manage Risk

Put options written on General Dynamics grant holders of the option the right to sell a specified amount of General Dynamics at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of General Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge General Dynamics' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding General Dynamics will be realized, the loss incurred will be offset by the profits made with the option trade.

### General Dynamics' PUT expiring on 2022-08-12

Profit |

Share

General Dynamics Price At Expiration |

### Current General Dynamics Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2022-08-12 PUT at $232.5 | -0.7471 | 0.0585 | 1 | 2022-08-12 | 4.0 - 5.1 | 3.2 | View |

Put | 2022-08-12 PUT at $230.0 | -0.565 | 0.0572 | 18 | 2022-08-12 | 2.85 - 3.7 | 3.41 | View |

Put | 2022-08-12 PUT at $227.5 | -0.4231 | 0.0549 | 20 | 2022-08-12 | 1.7 - 2.65 | 2.25 | View |

Put | 2022-08-12 PUT at $225.0 | -0.2838 | 0.0496 | 23 | 2022-08-12 | 1.0 - 1.45 | 1.48 | View |

Put | 2022-08-12 PUT at $222.5 | -0.1974 | 0.0365 | 17 | 2022-08-12 | 0.75 - 0.95 | 0.98 | View |

Put | 2022-08-12 PUT at $220.0 | -0.1494 | 0.0265 | 15 | 2022-08-12 | 0.4 - 0.7 | 0.69 | View |

Put | 2022-08-12 PUT at $217.5 | -0.1038 | 0.0193 | 54 | 2022-08-12 | 0.35 - 0.75 | 0.47 | View |

Put | 2022-08-12 PUT at $215.0 | -0.076 | 0.0142 | 3 | 2022-08-12 | 0.15 - 0.55 | 0.69 | View |

Put | 2022-08-12 PUT at $212.5 | -0.0709 | 0.0116 | 15 | 2022-08-12 | 0.0 - 0.6 | 0.55 | View |

Put | 2022-08-12 PUT at $210.0 | -0.039 | 0.0075 | 20 | 2022-08-12 | 0.0 - 0.25 | 0.18 | View |

## General Dynamics Corp Stock Volatility Analysis

Volatility refers to the frequency at which General Dynamics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with General Dynamics' price changes. Investors will then calculate the volatility of General Dynamics' 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 General Dynamics' volatility:

### Historical Volatility

This type of stock volatility measures General Dynamics' fluctuations based on previous trends. It's commonly used to predict General Dynamics' 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 General Dynamics' current market price. This means that the stock will return to its initially predicted market price.Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of General Dynamics Corp price series..

## General Dynamics Projected Return Density Against Market

Allowing for the 90-day total investment horizon General Dynamics has a beta of 0.9722 . This usually indicates General Dynamics Corp market returns are highly-sensitive to returns on the market. As the market goes up or down, General Dynamics is expected to follow.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 General Dynamics or Industrials 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 General Dynamics stock'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 General 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.

The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. General Dynamics Corp is significantly underperforming DOW. Predicted Return Density |

Returns |

## What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.## General Dynamics Stock Risk Measures

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 General Dynamics or Industrials 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 General Dynamics stock'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 General 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.

Allowing for the 90-day total investment horizon the coefficient of variation of General Dynamics is 9662.54. The daily returns are distributed with a variance of 2.44 and standard deviation of 1.56. The mean deviation of General Dynamics Corp is currently at 1.23. For similar time horizon, the selected benchmark (DOW) has volatility of 1.36

α | Alpha over DOW | -0.0018 | |

β | Beta against DOW | 0.97 | |

σ | Overall volatility | 1.56 | |

Ir | Information ratio | -0.0008 |

## General Dynamics Stock Return Volatility

General Dynamics historical daily return volatility represents how much General Dynamics stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm accepts 1.5635% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.2597% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About General Dynamics Volatility

Volatility is a rate at which the price of General Dynamics 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 General Dynamics may increase or decrease. In other words, similar to General's beta indicator, it measures the risk of General Dynamics and helps estimate the fluctuations that may happen in a short period of time. So if prices of General Dynamics 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 2022 | |

Market Capitalization | 58.2 B | 56 B |

## General Dynamics Investment Opportunity

General Dynamics Corp has a volatility of 1.56 and is 1.24 times more volatile than DOW.**13**of all equities and portfolios are less risky than General Dynamics. Compared to the overall equity markets, volatility of historical daily returns of General Dynamics Corp is lower than

**13 ()**of all global equities and portfolios over the last 90 days.

Use General Dynamics Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of General Dynamics to be traded at $219.07 in 90 days. .

### Poor diversification

The correlation between General Dynamics Corp and DJI is

**Poor diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding General Dynamics Corp and DJI in the same portfolio, assuming nothing else is changed.## General Dynamics Additional Risk Indicators

The analysis of General Dynamics' 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 General Dynamics' investment and either accepting that risk or mitigating it. Along with some common measures of General Dynamics stock 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 | (0.003707) | |||

Market Risk Adjusted Performance | (0.007704) | |||

Mean Deviation | 1.32 | |||

Coefficient Of Variation | (23,631) | |||

Standard Deviation | 1.7 | |||

Variance | 2.9 | |||

Information Ratio | (0.00079619) |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## General Dynamics 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 General Dynamics 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. General Dynamics' 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, General Dynamics' 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 General Dynamics Corp.

Please check Risk vs Return Analysis. Note that the General Dynamics Corp information on this page should be used as a complementary analysis to other General Dynamics' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

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When running General Dynamics Corp price analysis, check to measure General Dynamics' 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 General Dynamics is operating at the current time. Most of General Dynamics' value examination focuses on studying past and present price action to predict the probability of General Dynamics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move General Dynamics' price. Additionally, you may evaluate how the addition of General Dynamics to your portfolios can decrease your overall portfolio volatility.

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Is General Dynamics' industry 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 General Dynamics. If investors know General 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 General Dynamics 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 YOY 0.054 | Market Capitalization 62.7 B | Quarterly Revenue Growth YOY -0.003 | Return On Assets 0.0542 | Return On Equity 0.2 |

The market value of General Dynamics Corp is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General Dynamics' value that differs from its market value or its book value, called intrinsic value, which is General Dynamics' 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 General Dynamics' market value can be influenced by many factors that don't directly affect General Dynamics' 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 General Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine General Dynamics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General Dynamics' 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.