Generate comparisons of the price movements of the stock between EATON (blue) an
ID: 2779872 • Letter: G
Question
Generate comparisons of the price movements of the stock between EATON (blue) and S&P 500 (purple). Write TWO PARAGRAPHS discussing Eaton's stock price performance relative to that of the market as a whole, e.g., the S&P 500, over the past several months. Your comments are to include statements as to whether the stock's price seems to move up and down with the market or against it, and whether it moves more or less vigorously than the market.
Eaton Corporation plc (ETN) Add to watchlist NYSE NYSE Delayed Price. Currency in USD 79.38-1.53 (-1.89%) 79.37-0.01 (-0.01 %) TRADE FOR $4.95GET AN EXPER ON THE F ANNOUNCE ETN At close: 4:01PM EDT After hours: 4:50PM EDT 6) Indicators O comparisonDate Range ID 5D 1M 3M 6M YTD IY 2Y 5Y Max Interval 1D-~Line-ODraw Sett ETN 73.85 X ^GSPC 2348.69 X 20.00% 17.03% 15.00% 14.03% 10.00% | 5.00% .00% 2017 Feb Mar Apr Jul Aug Oct In partnership with ChartlQExplanation / Answer
It is clear from the graph that eaton has deliver more return than the market as a whole only if investor has entered at correct point of time. Here point of entry is very important as eaton's has huge volatility( refered to as beta) compared to market, if one has entered in july mid ie at higest price and exited in september due to fear he would have incur great loss as compared to market as whole since at that time there was little movement in the benchmark index, hence in such volatile stock patience is the key
Eaton in bull market outperforms the index while in bearish condition it crashes more than the index thus it has beta of more than 1. Looking at the chart eaton has touched it's high in previous session and was unable to break it. It means that ,the highest point act as resistance for the share hence one can say that it is in downtrend.
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