GSE Systems Stock Volatility

GVP
 Stock
  

USD 0.69  0.01  1.47%   

GSE Systems holds Efficiency (Sharpe) Ratio of -0.11, which attests that the entity had -0.11% of return per unit of return volatility over the last 3 months. Macroaxis approach to determining the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. GSE Systems exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out GSE Systems market risk adjusted performance of (1.39), and Risk Adjusted Performance of (0.19) to validate the risk estimate we provide.
  
GSE Systems 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 GSE Systems daily returns, and it is calculated using variance and standard deviation. We also use GSE Systems's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of GSE Systems volatility.

690 Days Market Risk

Extremely Dangerous

Chance of Distress

Below Average

690 Days Economic Sensitivity

Slowly supersedes the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as GSE Systems 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 GSE Systems at lower prices. For example, an investor can purchase GSE Systems 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 GSE Systems' 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 GSE Systems

+0.83SNOWSnowflake Downward RallyPairCorr
+0.94TEAMAtlassian Corp PlcPairCorr

Moving against GSE Systems

-0.79BAHBooz Allen HamiltonPairCorr
-0.7CHRDChord Energy CorpPairCorr
-0.6CACICACI InternationalPairCorr
-0.6CHKPCheck Point SoftwarePairCorr

GSE Systems Market Sensitivity And Downside Risk

GSE Systems' beta coefficient measures the volatility of GSE Systems 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 GSE Systems stock's returns against your selected market. In other words, GSE Systems's beta of 0.46 provides an investor with an approximation of how much risk GSE Systems stock can potentially add to one of your existing portfolios.
GSE Systems exhibits very low volatility with skewness of 0.76 and kurtosis of 1.03. However, we advise investors to further study GSE Systems technical indicators to ensure that all market info is available and is reliable. GSE Systems is a potential penny stock. Although GSE Systems may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in GSE Systems. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on GSE Systems instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze GSE Systems Demand Trend
Check current 90 days GSE Systems correlation with market (NYSE Composite)

GSE Systems Beta

    
  0.46  
GSE Systems 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.

Standard Deviation

    
  4.82  
It is essential to understand the difference between upside risk (as represented by GSE Systems's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of GSE Systems' daily returns or price. Since the actual investment returns on holding a position in gse systems 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 GSE Systems.

GSE Systems Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures GSE Systems' fluctuations based on previous trends. It's commonly used to predict GSE Systems' 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 GSE Systems' 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 GSE Systems' 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. The Median Price line plots median indexes of GSE Systems price series.
.

GSE Systems Projected Return Density Against Market

Considering the 90-day investment horizon GSE Systems has a beta of 0.4591 . This usually indicates as returns on the market go up, GSE Systems average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding GSE Systems 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 GSE Systems or Software 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 GSE Systems' 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 GSE Systems 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. GSE Systems is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
GSE Systems' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how gse systems stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a GSE Systems Price Volatility?

Several factors can influence a Stock'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.

GSE Systems 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 GSE Systems or Software 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 GSE Systems' 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 GSE Systems 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. Considering the 90-day investment horizon the coefficient of variation of GSE Systems is -891.43. The daily returns are distributed with a variance of 23.26 and standard deviation of 4.82. The mean deviation of GSE Systems is currently at 3.48. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.48
α
Alpha over NYSE Composite
-0.69
β
Beta against NYSE Composite0.46
σ
Overall volatility
4.82
Ir
Information ratio -0.15

GSE Systems Stock Return Volatility

GSE Systems historical daily return volatility represents how much of GSE Systems stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 4.8225% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 12.6051% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About GSE Systems Volatility

Volatility is a rate at which the price of GSE Systems 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 GSE Systems may increase or decrease. In other words, similar to GSE Systems's beta indicator, it measures the risk of GSE Systems and helps estimate the fluctuations that may happen in a short period of time. So if prices of GSE Systems 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.
GSE Systems, Inc. provides professional and technical engineering, staffing services, and simulation software to the power and process industries in the United States, Asia, Europe, and internationally. The company was founded in 1971 and is headquartered in Columbia, Maryland. GSE Systems operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 286 people.

GSE Systems Investment Opportunity

NYSE Composite has a standard deviation of returns of 12.61 and is 2.62 times more volatile than GSE Systems. 41  of all equities and portfolios are less risky than GSE Systems. Compared to the overall equity markets, volatility of historical daily returns of GSE Systems is lower than 41 () of all global equities and portfolios over the last 90 days. Use GSE Systems to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a large bullish trend. Check odds of GSE Systems to be traded at $0.759 in 90 days.

Average diversification

The correlation between GSE Systems and NYA is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding GSE Systems and NYA in the same portfolio, assuming nothing else is changed.

GSE Systems Additional Risk Indicators

The analysis of GSE Systems' 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 GSE Systems' investment and either accepting that risk or mitigating it. Along with some common measures of GSE Systems 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.
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.

GSE Systems 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 GSE Systems 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. GSE Systems' 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, GSE Systems' 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 GSE Systems.
Please check Risk vs Return Analysis. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running GSE Systems price analysis, check to measure GSE Systems' 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 GSE Systems is operating at the current time. Most of GSE Systems' value examination focuses on studying past and present price action to predict the probability of GSE Systems' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move GSE Systems' price. Additionally, you may evaluate how the addition of GSE Systems to your portfolios can decrease your overall portfolio volatility.
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Is GSE Systems' 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 GSE Systems. If investors know GSE Systems 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 GSE Systems 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
(0.043) 
Market Capitalization
15.1 M
Quarterly Revenue Growth YOY
(0.19) 
Return On Assets
(0.14) 
Return On Equity
(0.88) 
The market value of GSE Systems is measured differently than its book value, which is the value of GSE Systems that is recorded on the company's balance sheet. Investors also form their own opinion of GSE Systems' value that differs from its market value or its book value, called intrinsic value, which is GSE Systems' 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 GSE Systems' market value can be influenced by many factors that don't directly affect GSE Systems' 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 GSE Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine GSE Systems value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GSE Systems' 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.