Gty Technology Stock Volatility

GTYH
 Stock
  

USD 6.24  0.02  0.32%   

Gty Technology appears to be not too volatile, given 1 month investment horizon. Gty Technology Holdings holds Efficiency (Sharpe) Ratio of 0.24, which attests that the entity had 0.24% of return per unit of risk over the last month. 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-seven technical indicators for Gty Technology Holdings, which you can use to evaluate the future volatility of the firm. Please utilize Gty Technology's Risk Adjusted Performance of 0.3749, market risk adjusted performance of 0.7241, and Downside Deviation of 0.9125 to validate if our risk estimates are consistent with your expectations.
  
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Gty Technology 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 Gty Technology daily returns, and it is calculated using variance and standard deviation. We also use Gty Technology's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gty Technology volatility.

30 Days Market Risk

Not too volatile

Chance of Distress

30 Days Economic Sensitivity

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

Gty Technology Market Sensitivity And Downside Risk

Gty Technology's beta coefficient measures the volatility of Gty Technology 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 Gty Technology stock's returns against your selected market. In other words, Gty Technology's beta of 0.36 provides an investor with an approximation of how much risk Gty Technology stock can potentially add to one of your existing portfolios.
Let's try to break down what Gty Technology's beta means in this case. As returns on the market increase, Gty Technology returns are expected to increase less than the market. However, during the bear market, the loss on holding Gty Technology will be expected to be smaller as well.
One Month Beta |Analyze Gty Technology Holdings Demand Trend
Check current 90 days Gty Technology correlation with market (DOW)

Gty Technology Beta

    
  0.36  
Gty Technology 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

    
  1.02  
It is essential to understand the difference between upside risk (as represented by Gty Technology's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gty Technology stock's daily returns or price. Since the actual investment returns on holding a position in Gty Technology 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 Gty Technology.

Gty Technology Implied Volatility

    
  301.11  
Gty Technology's implied volatility exposes the market's sentiment of Gty Technology Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Gty Technology's 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 Gty Technology stock will not fluctuate a lot when Gty Technology's options are near their expiration.

Gty Technology Holdings Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Gty Technology's fluctuations based on previous trends. It's commonly used to predict Gty Technology'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 Gty Technology's 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 seventeen. Gty Technology Holdings 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.
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Gty Technology Projected Return Density Against Market

Given the investment horizon of 90 days Gty Technology has a beta of 0.3608 . This usually indicates as returns on the market go up, Gty Technology average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Gty Technology Holdings 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 Gty Technology or Technology 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 Gty Technology 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 Gty Technology 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 0.369, implying that it can generate a 0.37 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Gty Technology's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Gty Technology 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.

Gty Technology 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 Gty Technology or Technology 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 Gty Technology 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 Gty Technology 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 Gty Technology is 417.25. The daily returns are distributed with a variance of 1.04 and standard deviation of 1.02. The mean deviation of Gty Technology Holdings is currently at 0.71. For similar time horizon, the selected benchmark (DOW) has volatility of 1.44
α
Alpha over DOW
0.37
β
Beta against DOW0.36
σ
Overall volatility
1.02
Ir
Information ratio 0.56

Gty Technology Stock Return Volatility

Gty Technology historical daily return volatility represents how much Gty Technology stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 1.0201% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.4778% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Gty Technology Volatility

Volatility is a rate at which the price of Gty Technology 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 Gty Technology may increase or decrease. In other words, similar to Gty Technology's beta indicator, it measures the risk of Gty Technology and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gty Technology 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 Capitalization385.7 M381.9 M
GTY Technology Holdings Inc. operates as a software-as-a-service company that offers a cloud-based suite of solutions for the public sector in North America. GTY Technology Holdings Inc. was incorporated in 2016 and is headquartered in Boston, Massachusetts. Gty Technology operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 5 people.

Gty Technology Investment Opportunity

DOW has a standard deviation of returns of 1.48 and is 1.45 times more volatile than Gty Technology Holdings. of all equities and portfolios are less risky than Gty Technology. Compared to the overall equity markets, volatility of historical daily returns of Gty Technology Holdings is lower than 8 () of all global equities and portfolios over the last 90 days. Use Gty Technology Holdings to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Gty Technology to be traded at $6.18 in 90 days. . Let's try to break down what Gty Technology's beta means in this case. As returns on the market increase, Gty Technology returns are expected to increase less than the market. However, during the bear market, the loss on holding Gty Technology will be expected to be smaller as well.

Very weak diversification

The correlation between Gty Technology Holdings and DJI is Very weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gty Technology Holdings and DJI in the same portfolio, assuming nothing else is changed.

Gty Technology Additional Risk Indicators

The analysis of Gty Technology'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 Gty Technology's investment and either accepting that risk or mitigating it. Along with some common measures of Gty Technology 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 Performance0.3749
Market Risk Adjusted Performance0.7241
Mean Deviation0.7128
Semi Deviation0.3167
Downside Deviation0.9125
Coefficient Of Variation381.13
Standard Deviation1.02
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.

Gty Technology 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 Gty Technology 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. Gty Technology'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, Gty Technology'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 Gty Technology Holdings.
Please check Risk vs Return Analysis. Note that the Gty Technology Holdings information on this page should be used as a complementary analysis to other Gty Technology's 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Complementary Tools for Gty Technology Stock analysis

When running Gty Technology Holdings price analysis, check to measure Gty Technology's 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 Gty Technology is operating at the current time. Most of Gty Technology's value examination focuses on studying past and present price action to predict the probability of Gty Technology's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Gty Technology's price. Additionally, you may evaluate how the addition of Gty Technology to your portfolios can decrease your overall portfolio volatility.
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Is Gty Technology's 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 Gty Technology. If investors know Gty Technology 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 Gty Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
373.1 M
Quarterly Revenue Growth YOY
0.2
Return On Assets
-0.0478
Return On Equity
-0.14
The market value of Gty Technology Holdings is measured differently than its book value, which is the value of Gty Technology that is recorded on the company's balance sheet. Investors also form their own opinion of Gty Technology's value that differs from its market value or its book value, called intrinsic value, which is Gty Technology'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 Gty Technology's market value can be influenced by many factors that don't directly affect Gty Technology'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 Gty Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine Gty Technology value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gty Technology'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.