We consider PowerShares QQQ not too risky. PowerShares QQQ ETF maintains Sharpe Ratio (i.e. Efficiency) of 0.141 which implies PowerShares QQQ ETF had 0.141% of return per unit of risk over the last 1 month. Our philosophy towards forecasting 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 PowerShares QQQ ETF which you can use to evaluate future volatility of the etf. Please check PowerShares QQQ ETF Coefficient Of Variation of 466.78, Semi Deviation of 0.5555 and Risk Adjusted Performance of 0.105 to confirm if risk estimate we provide are consistent with the epected return of 0.0927%.
|Investment Horizon||30 Days Login to change|
PowerShares QQQ Market Sensitivity
|As returns on market increase, PowerShares QQQ returns are expected to increase less than the market. However during bear market, the loss on holding PowerShares QQQ will be expected to be smaller as well.One Month Beta |Analyze PowerShares QQQ ETF Demand TrendCheck current 30 days PowerShares QQQ correlation with market (DOW)|
β = 0.5481
PowerShares QQQ ETF Technical Analysis
Projected Return Density Against MarketConsidering 30-days investment horizon, PowerShares QQQ has beta of 0.5481 . This implies as returns on market go up, PowerShares QQQ average returns are expected to increase less than the benchmark. However during bear market, the loss on holding PowerShares QQQ ETF will be expected to be much smaller as well. Moreover, PowerShares QQQ ETF has an alpha of 0.0019 implying that it can potentially generate 0.0019% excess return over DOW after adjusting for the inherited market risk (beta).
Considering 30-days investment horizon, the coefficient of variation of PowerShares QQQ is 709.44. The daily returns are destributed with a variance of 0.43 and standard deviation of 0.66. The mean deviation of PowerShares QQQ ETF is currently at 0.45. For similar time horizon, the selected benchmark (DOW) has volatility of 0.47