PortMath weekly market update for November 24th 2014:
We think this market is becoming more risky because over the last four months the NIC has dropped from 1000 to 653 as shown on the graph below. In other words, the NYSE is now roughly equivalent to a market with 653 independent stocks.
New York Stock Exchange Summary
The average past returns of our top NYSE stocks is plotted on the graph below which shows our higher ranked stocks gave slightly better returns on average over the past 60 days.
653 is the current NIC for the NYSE and is an estimate of the number of truly different stocks in this exchange. Higher values of the NIC can indicate more robust markets.
Average risk of our top ranked stocks:
The average past standard deviations of our top NYSE stocks is plotted on the graph below which shows that our higher ranked stocks had smaller standard deviations on average.