VanEck Vectors Risk Analysis

VanEck Vectors Biotech ETF -- USA Etf  

USD 128.6  0.55  0.43%

We consider VanEck Vectors not too risky. VanEck Vectors Biotech owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.1337 which indicates VanEck Vectors Biotech had 0.1337% of return per unit of risk over the last 1 month. Our philosophy towards measuring volatility of a etf is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for VanEck Vectors Biotech ETF which you can use to evaluate future volatility of the etf. Please validate VanEck Vectors Semi Deviation of 0.5744, Coefficient Of Variation of 1191.46 and Risk Adjusted Performance of 0.0385 to confirm if risk estimate we provide are consistent with the epected return of 0.1156%.
 Time Horizon     30 Days    Login   to change

VanEck Vectors Market Sensitivity

As returns on market increase, returns on owning VanEck Vectors are expected to decrease by larger amounts. On the other hand, during market turmoil, VanEck Vectors is expected to significantly outperform it.
One Month Beta |Analyze VanEck Vectors Biotech Demand Trend
Check current 30 days VanEck Vectors correlation with market (DOW)
β = -1.3075
VanEck Vectors Large Negative BetaVanEck Vectors Biotech Beta Legend

VanEck Vectors Biotech Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. VanEck Vectors Biotech 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. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Considering 30-days investment horizon, VanEck Vectors Biotech ETF has beta of -1.3075 . This suggests as returns on its benchmark rise, returns on holding VanEck Vectors Biotech ETF are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, VanEck Vectors is expected to outperform its benchmark. Moreover, VanEck Vectors Biotech ETF has an alpha of 0.3641 implying that it can potentially generate 0.3641% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of VanEck Vectors is 747.83. The daily returns are destributed with a variance of 0.75 and standard deviation of 0.86. The mean deviation of VanEck Vectors Biotech ETF is currently at 0.58. For similar time horizon, the selected benchmark (DOW) has volatility of 0.39
α
Alpha over DOW
=0.36
β
Beta against DOW=1.31
σ
Overall volatility
=0.86
Ir
Information ratio =0.17

Actual Return Volatility

VanEck Vectors Biotech ETF has volatility of 0.8648% on return distribution over 30 days investment horizon. DOW inherits 0.3852% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

VanEck Vectors Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Almost imposible

30 Days Economic Sensitivity

Very regressive towards market

Largest Trends

VanEck Vectors Largest Period Trend

Investment Outlook

VanEck Vectors Investment Opportunity
VanEck Vectors Biotech ETF has a volatility of 0.86 and is 2.21 times more volatile than DOW. 7% of all equities and portfolios are less risky than VanEck Vectors. Compared to the overall equity markets, volatility of historical daily returns of VanEck Vectors Biotech ETF is lower than 7 (%) of all global equities and portfolios over the last 30 days. Use VanEck Vectors Biotech ETF to protect against small markets fluctuations. The etf experiences normal downward trend and little activity. Check odds of VanEck Vectors to be traded at $127.31 in 30 days. As returns on market increase, returns on owning VanEck Vectors are expected to decrease by larger amounts. On the other hand, during market turmoil, VanEck Vectors is expected to significantly outperform it.

VanEck Vectors correlation with market

Excellent diversification
Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Biotech ETF and equity matching DJI index in the same portfolio.

Volatility Indicators

VanEck Vectors Current Risk Indicators