Volatility Analysis for National Semiconductor Corporation

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This chart shows Volatility for National Semiconductor Corporation, defined to be the price range as a portion of the average price:

So, to derive the Daily Volatility on 2/7/2011 of 3.1%, the price range for the day (0.49) was divided by the average price (15.49). The Daily Volatility is obtained by dividing the daily range by the daily average. A longer Volatility period such as Weekly Volatility is obtained by dividing the weekly price range by the weekly mean price. It is important to avoid confusing this with the weekly average of the daily volatility, which is a completely different concept.

For reference, the price is plotted in red. Volatility, as measured through various intervals, ( Daily, Weekly, Monthly and Quarterly) is plotted according to color.

According to academic theory, Volatility is exactly equal to Risk. But investors often make a distinction between these two concepts. The different character of Volatility as seen in different time frames, lends some support to the investor's view. During 29 years, the Average Quarterly Volatility of NSM stock price has been 39% while the Average Daily Volatility has been 4%.

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If you have ever seen a "yield curve" you should be able to understand the concept behind this "yield curve". Each Volatility Curve is a snapshot in time. As the timespan across which Volatility is measured increases, the Volatility is expected to increase. However, as seen in this plot of the NSM Volatility Curve, the increase is not constant.

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A frequency distribution of the green points on the first chart (the daily volatility) yields this histogram.

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Similarly, the purple points on the top chart, the Quarterly Volatility Values, are subjected to frequency distribution here.

For Subscribers: Refined Analysis of National Semiconductor Corporation Volatility and Risk Behavior

Refined Volatility Risk Analysis for NSM :

Companies in the News:

Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and McCormick & Company, Incorporated.

From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp.

Volatility Analysis for National Semiconductor Corporation

For Subscribers: Refined Analysis of National Semiconductor Corporation Volatility and Risk Behavior

Refined Volatility Risk Analysis for NSM :

Companies in the News:

More NSM Technical Analysis Topics

Information on public pages is delayed. Associates of Hybrid Technical may hold positions in issues covered here. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited.

Volatility Analysis for National Semiconductor Corporation

For Subscribers: Refined Analysis of National Semiconductor Corporation Volatility and Risk Behavior

Refined Volatility Risk Analysis for NSM :

Companies in the News:

More NSM Technical Analysis Topics

NSM Price PredictionsSupport and Resistance LevelsVolume Stratification AnalysisPolitics and Prices of NSMJapanese Candlestick AnalysisMomentum Investing IndicatorsNSM Classical Analysis of Time SeriesNSM Historical VolumeNSM Seasonal TrendsMarket SentimentBack to NSM Table of Contents

Information on public pages is delayed. Associates of Hybrid Technical may hold positions in issues covered here. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited.