Bgc Partners Stock Volatility

BGCP
 Stock
  

USD 4.11  0.01  0.24%   

Bgc Partners appears to be slightly risky, given 3 months investment horizon. Bgc Partners Cl secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that the company had 0.17% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing 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-seven technical indicators for Bgc Partners Cl, which you can use to evaluate the future volatility of the firm. Please makes use of Bgc Partners' mean deviation of 1.99, and Risk Adjusted Performance of 0.157 to double-check if our risk estimates are consistent with your expectations.
  
Bgc Partners 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 Bgc Partners daily returns, and it is calculated using variance and standard deviation. We also use Bgc Partners's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bgc Partners volatility.

30 Days Market Risk

Slightly risky

Chance of Distress

Below Average

30 Days Economic Sensitivity

Responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bgc Partners 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 Bgc Partners at lower prices. For example, an investor can purchase Bgc Partners 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 Bgc Partners' 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 against Bgc Partners

0.79ATYMASIA TIME CORPPairCorr
0.71COHNCohen IncPairCorr
0.61ATIFAtif HoldingsPairCorr
0.61BTCSBTCS INCPairCorr

Bgc Partners Market Sensitivity And Downside Risk

Bgc Partners' beta coefficient measures the volatility of Bgc Partners 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 Bgc Partners stock's returns against your selected market. In other words, Bgc Partners's beta of 1.31 provides an investor with an approximation of how much risk Bgc Partners stock can potentially add to one of your existing portfolios.
Bgc Partners Cl currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.27. However, we advise investors to further question Bgc Partners Cl expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bgc Partners' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bgc Partners' 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.

Bgc Partners Implied Volatility

Bgc Partners' implied volatility exposes the market's sentiment of Bgc Partners Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bgc Partners' 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 Bgc Partners stock will not fluctuate a lot when Bgc Partners' options are near their expiration.
3 Months Beta |Analyze Bgc Partners Cl Demand Trend
Check current 90 days Bgc Partners correlation with market (DOW)

Bgc Partners Beta

    
  1.31  
Bgc Partners 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

    
  2.44  
It is essential to understand the difference between upside risk (as represented by Bgc Partners's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bgc Partners stock's daily returns or price. Since the actual investment returns on holding a position in Bgc Partners 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 Bgc Partners.

Using Bgc Partners Put Option to Manage Risk

Put options written on Bgc Partners grant holders of the option the right to sell a specified amount of Bgc Partners 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 Bgc Partners Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Bgc Partners' 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 Bgc Partners will be realized, the loss incurred will be offset by the profits made with the option trade.

Bgc Partners' PUT expiring on 2022-08-19

   Profit   
Share
       Bgc Partners Price At Expiration  

Bgc Partners Cl Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Bgc Partners' fluctuations based on previous trends. It's commonly used to predict Bgc Partners' 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 Bgc Partners' 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. Developed by Larry Williams, the Weighted Close is the average of Bgc Partners Cl high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Bgc Partners closing price as input.
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Bgc Partners Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.3132 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Bgc Partners 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 Bgc Partners or Financial Services 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 Bgc Partners 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 Bgc Partners 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 an alpha of 0.2734, implying that it can generate a 0.27 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Bgc Partners' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Bgc Partners 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 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.

Bgc Partners 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 Bgc Partners or Financial Services 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 Bgc Partners 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 Bgc Partners 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.
Given the investment horizon of 90 days the coefficient of variation of Bgc Partners is 574.8. The daily returns are distributed with a variance of 5.97 and standard deviation of 2.44. The mean deviation of Bgc Partners Cl is currently at 1.87. For similar time horizon, the selected benchmark (DOW) has volatility of 1.27
α
Alpha over DOW
0.27
β
Beta against DOW1.31
σ
Overall volatility
2.44
Ir
Information ratio 0.11

Bgc Partners Stock Return Volatility

Bgc Partners historical daily return volatility represents how much Bgc Partners stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 2.4434% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.2677% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Bgc Partners Volatility

Volatility is a rate at which the price of Bgc Partners 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 Bgc Partners may increase or decrease. In other words, similar to Bgc Partners's beta indicator, it measures the risk of Bgc Partners and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bgc Partners 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 ReportedProjected for 2022
Market Capitalization1.7 BB
BGC Partners, Inc. operates as a financial brokerage and technology company in the United States, France, other Europe, the United Kingdom, other Americas, Asia, Australia, Africa, and the Middle East. BGC Partners, Inc. was founded in 1945 and is headquartered in New York, New York. Bgc Partners operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange. It employs 20 people.

Bgc Partners Investment Opportunity

Bgc Partners Cl has a volatility of 2.44 and is 1.92 times more volatile than DOW. 21  of all equities and portfolios are less risky than Bgc Partners. Compared to the overall equity markets, volatility of historical daily returns of Bgc Partners Cl is lower than 21 () of all global equities and portfolios over the last 90 days.
Use Bgc Partners Cl to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of Bgc Partners to be traded at $4.07 in 90 days. .

Poor diversification

The correlation between Bgc Partners Cl and DJI is Poor diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bgc Partners Cl and DJI in the same portfolio, assuming nothing else is changed.

Bgc Partners Additional Risk Indicators

The analysis of Bgc Partners' 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 Bgc Partners' investment and either accepting that risk or mitigating it. Along with some common measures of Bgc Partners 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 Performance0.157
Market Risk Adjusted Performance0.2349
Mean Deviation1.99
Semi Deviation2.18
Downside Deviation2.45
Coefficient Of Variation835.06
Standard Deviation2.55
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.

Bgc Partners 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 Bgc Partners 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. Bgc Partners' 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, Bgc Partners' 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 Bgc Partners Cl.
Continue to Trending Equities. Note that the Bgc Partners Cl information on this page should be used as a complementary analysis to other Bgc Partners' 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Complementary Tools for Bgc Partners Stock analysis

When running Bgc Partners Cl price analysis, check to measure Bgc Partners' 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 Bgc Partners is operating at the current time. Most of Bgc Partners' value examination focuses on studying past and present price action to predict the probability of Bgc Partners' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Bgc Partners' price. Additionally, you may evaluate how the addition of Bgc Partners to your portfolios can decrease your overall portfolio volatility.
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Is Bgc Partners' 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 Bgc Partners. If investors know Bgc Partners 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 Bgc Partners 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
3.06
Market Capitalization
1.5 B
Quarterly Revenue Growth YOY
-0.15
Return On Assets
0.0243
Return On Equity
0.16
The market value of Bgc Partners Cl is measured differently than its book value, which is the value of Bgc Partners that is recorded on the company's balance sheet. Investors also form their own opinion of Bgc Partners' value that differs from its market value or its book value, called intrinsic value, which is Bgc Partners' 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 Bgc Partners' market value can be influenced by many factors that don't directly affect Bgc Partners' 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 Bgc Partners' value and its price as these two are different measures arrived at by different means. Investors typically determine Bgc Partners value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bgc Partners' 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.