BEDL Index Stock Risk Report
Basic Instructions
The goal of the BEDL Index is to make an investor aware of the surrounding market forces that may be revealed through risk analysis of this type.
The BEDL Index Market Risk gives an overall look at the market activity and evaluates market value, risk exposure and risk trends to provide a visual indication of current conditions. Current conditions are just that, good for the few minutes around when the risk matrix was updated.
Used in conjunction with the BEDL Index Stock Risk Matrix these tools may help an investor maximize positive Risk while minimizing Risk losses.
- WARNING: All values in this Index are RISK Values and may not necessarily correlate directly to actual Equity Value on the open market.
Using the BEDL Index's Risk Indicators
BEDL Index Volatility Variable
The BEDL Index Volatility Variable is used to project movement of equity risk vectors through the examination of all listed equities and data input to the risk matrix to determine a vector risk for the market.
The index is made up of market, sector and risk indicators. When the indicator name begins “BEDL” it means that it is specific to the 133 listed equities in the Index, otherwise it is an indicator of market forces that may move risk levels.
Market and Sector Risk
The “markets” for this matrix are 11 divisions of major areas of equities and include Consumer, Commodities, Energy, Financial, Healthcare, Industrials, Materials, Real Estate, Technology, Telecom and Utilities.
The “sectors” for this matrix are subdivisions of the “markets”.
The major World Sectors are Large Cap, Mid Cap, Small Cap, Growth, Value, and High Dividend, US Markets, World Markets, Multi-national Equities, China Equities and Developed World Markets.
Risk Factors are examined by Markets in US and Globally and by individual Index equities.
BEDL Index Stock Risk Report
The Stock Risk Report gives indicators on stock risk vectors. The Risk Alert and Stock Alert are derived from specific algorithms to determine probable risk trajectories and are displayed in Risk Range A2 and Risk Range A1. Normally A1 is Max and A2 is Min, but these two values may be inverted but are used as Max and Min of the vector range regardless of A1, A2's relative values.
For instance, AAPL shows that Volatility is down, Risk is trending down (getting riskier) and the current value is between the risk ranges of (A2) 262.67 and (A1) 263.82, at 262.61, which is below the “Last” of 261.93.
This puts AAPL -0.24% below its stable risk point, or “Pivot”. The Pivot gives a percentage, or “Delta” from the Pivot, either positive or negative and the higher or lower the percentage, the higher the probability of a “snap back” in the risk value of the equity.
AMD is “Risk On” and “Top Range” with A2 higher than A1 meaning that Pivot Delta should be narrowing to 0% from 0.82% over the Pivot.
Coming in the Future
Future development of the BEDL Index will include features for Risk Scaling allowing interaction with aggressive and conservative Risk ranges to choose acceptable levels of Risk by individual users of the BEDL Index.
Scalability is important for future use of the data, trends and analysis created in the BEDL Index, allowing these data points to be displayed and will include individual stock views and charts.