PortMath weekly market update for October 20th 2014:
We think this market is becoming increasingly risky because over the last three months the NIC has dropped from 1000 to 599 as shown on the graph below. In other words, the NYSE is now roughly equivalent to a market with 599 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 slightly better returns on average over the past year as shown by the following graph.
599 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 slightly smaller standard deviations on average.