Aberdeen Total Dynamic Fund Volatility
| AOD Fund | USD 7.96 0.09 1.14% |
We consider Aberdeen Total very steady. Aberdeen Total Dynamic secures Sharpe Ratio (or Efficiency) of 0.0524, which signifies that the fund had a 0.0524% return per unit of standard deviation over the last 3 months. We have found twenty-eight technical indicators for Aberdeen Total Dynamic, which you can use to evaluate the volatility of the entity. Please confirm Aberdeen Total's mean deviation of 0.5229, and Risk Adjusted Performance of 0.026 to double-check if the risk estimate we provide is consistent with the expected return of 0.0373%. Key indicators related to Aberdeen Total's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Aberdeen Total Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Aberdeen daily returns, and it is calculated using variance and standard deviation. We also use Aberdeen's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Aberdeen Total volatility.
Aberdeen |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Aberdeen Total can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Aberdeen Total at lower prices. For example, an investor can purchase Aberdeen stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Aberdeen Total's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Aberdeen Fund
| 0.82 | TEI | Templeton Emerging | PairCorr |
| 0.82 | PHK | Pimco High Me | PairCorr |
| 0.74 | HIO | Western Asset High | PairCorr |
| 0.87 | PCN | Pimco Corporate Me | PairCorr |
| 0.89 | PTY | Pimco Corporate Me | PairCorr |
Aberdeen Total Market Sensitivity And Downside Risk
Aberdeen Total's beta coefficient measures the volatility of Aberdeen fund compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Aberdeen fund's returns against your selected market. In other words, Aberdeen Total's beta of 0.93 provides an investor with an approximation of how much risk Aberdeen Total fund can potentially add to one of your existing portfolios. Aberdeen Total Dynamic exhibits relatively low volatility with skewness of -0.12 and kurtosis of -0.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aberdeen Total's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aberdeen Total's fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Aberdeen Total Dynamic Demand TrendCheck current 90 days Aberdeen Total correlation with market (NYSE Composite)Aberdeen Beta |
Aberdeen standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.71 |
It is essential to understand the difference between upside risk (as represented by Aberdeen Total's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Aberdeen Total's daily returns or price. Since the actual investment returns on holding a position in aberdeen fund tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Aberdeen Total.
Aberdeen Total Dynamic Fund Volatility Analysis
Volatility refers to the frequency at which Aberdeen Total fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Aberdeen Total's price changes. Investors will then calculate the volatility of Aberdeen Total's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Aberdeen Total's volatility:
Historical Volatility
This type of fund volatility measures Aberdeen Total's fluctuations based on previous trends. It's commonly used to predict Aberdeen Total's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Aberdeen Total's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Aberdeen Total's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Aberdeen Total Dynamic Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Aberdeen Total Projected Return Density Against Market
Considering the 90-day investment horizon Aberdeen Total has a beta of 0.9332 . This suggests Aberdeen Total Dynamic market returns are highly-sensitive to returns on the market. As the market goes up or down, Aberdeen Total is expected to follow.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Aberdeen Total or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Aberdeen Total's price will be affected by overall fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Aberdeen fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Aberdeen Total Dynamic has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives an Aberdeen Total Price Volatility?
Several factors can influence a fund's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Aberdeen Total Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Aberdeen Total is 1909.54. The daily returns are distributed with a variance of 0.51 and standard deviation of 0.71. The mean deviation of Aberdeen Total Dynamic is currently at 0.55. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.06 | |
β | Beta against NYSE Composite | 0.93 | |
σ | Overall volatility | 0.71 | |
Ir | Information ratio | -0.09 |
Aberdeen Total Fund Return Volatility
Aberdeen Total historical daily return volatility represents how much of Aberdeen Total fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.7128% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6371% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Aberdeen Total Volatility
Volatility is a rate at which the price of Aberdeen Total or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Aberdeen Total may increase or decrease. In other words, similar to Aberdeen's beta indicator, it measures the risk of Aberdeen Total and helps estimate the fluctuations that may happen in a short period of time. So if prices of Aberdeen Total fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Abrdn Total Dynamic Dividend Fund is a closed-ended equity mutual fund launched and managed by Alpine Woods Capital Investors, LLC. Abrdn Total Dynamic Dividend Fund was formed on October 27, 2006 and is domiciled in the United States. Aberdeen Total is traded on New York Stock Exchange in the United States.
Aberdeen Total's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Aberdeen Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Aberdeen Total's price varies over time.
3 ways to utilize Aberdeen Total's volatility to invest better
Higher Aberdeen Total's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Aberdeen Total Dynamic fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Aberdeen Total Dynamic fund volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Aberdeen Total Dynamic investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Aberdeen Total's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Aberdeen Total's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Aberdeen Total Investment Opportunity
Aberdeen Total Dynamic has a volatility of 0.71 and is 1.11 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Aberdeen Total Dynamic is lower than 6 percent of all global equities and portfolios over the last 90 days. You can use Aberdeen Total Dynamic to enhance the returns of your portfolios. The fund experiences a large bullish trend. Check odds of Aberdeen Total to be traded at $8.76 in 90 days.Very poor diversification
The correlation between Aberdeen Total Dynamic and NYA is 0.86 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Total Dynamic and NYA in the same portfolio, assuming nothing else is changed.
Aberdeen Total Additional Risk Indicators
The analysis of Aberdeen Total's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Aberdeen Total's investment and either accepting that risk or mitigating it. Along with some common measures of Aberdeen Total fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.026 | |||
| Market Risk Adjusted Performance | 0.0287 | |||
| Mean Deviation | 0.5229 | |||
| Semi Deviation | 0.6471 | |||
| Downside Deviation | 0.7148 | |||
| Coefficient Of Variation | 2445.89 | |||
| Standard Deviation | 0.6717 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Aberdeen Total Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Aberdeen Total as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Aberdeen Total's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Aberdeen Total's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Aberdeen Total Dynamic.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aberdeen Total Dynamic. Also, note that the market value of any fund could be tightly coupled with the direction of predictive economic indicators such as signals in persons. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.