For the fifth consecutive session, on the background of no company’s news to affect Cowen Group, Inc. (NASDAQ:COWN) stock, investors express their willingness to further unbar the price decline.
After breaking the rule that “investing in financial institutions is safe, because they are too big to fail” and despite the overall slow climbing up of financial institutions’ indexes these days, investors still have not restored their confidence towards the shares of the financial services industry.
Confirmation of the above was yesterday’s new 52-week low, noted in the records of the trading history of COWN stock.
COWN shares closed the market at $3.77 in a volume exceeding the average. Despite the 0.80% growth in the session, both benchmarks price and volume confirmed the inability to finally change the downward direction of COWN stock.
Comparison of COWN stock performance with Goldman Sachs Group, Inc. (GS), Morgan Stanley (MS), CME Group Inc (CME) and The Charles Schwab Corporation (SCHW) shows that since this May, despite overall correlation, the prices of above shares are in constant decline. Among them, COWN stock is the one with the deepest turn-down.
All above raises also the question about the risks related not only to COWN stock.[BANNER]
COWN stock indicates a higher risk than the market. Its Beta value is 1.58. For information and comparison, below are shown the Beta values of its competitors:
- Goldman Sachs Group, Inc. (GS) – 0.74
- Morgan Stanley (MS)- 1.28
- CME Group Inc (CME)- 0.92
- The Charles Schwab Corporation (SCHW)- 1
The Beta is defined as a measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower risk than the market. A beta of more than one indicates higher risk than the market.
