PortMath weekly market update for September 29th 2014:
We think this market is becoming increasingly risky because over the last two months the NIC has dropped from 1000 to 691 as shown on the graph below. In other words, the NYSE is now roughly equivalent to a market with 691 independent stocks.
New York Stock Exchange Summary
The average past returns of our top NYSE stocks is plotted on the graph below. Our higher ranked stocks gave better returns on average as shown by the following graph.
691 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 higher ranked stocks had smaller standard deviations on average.