VelocityShares 3x Risk Analysis

VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER -- USA Etf  

USD 25.99  0.20  0.76%

Macroaxis considers VelocityShares 3x to be not very volatile. VelocityShares 3x Long owns Efficiency Ratio (i.e. Sharpe Ratio) of -0.0753 which indicates VelocityShares 3x Long had -0.0753% of return per unit of risk over the last 1 month. Macroaxis philosophy towards measuring risk of any etf is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate VelocityShares 3x Coefficient Of Variation of 1,184 and Risk Adjusted Performance of 0.14 to confirm risk estimate we provide.
 Time Horizon     30 Days    Login   to change

VelocityShares 3x Market Sensitivity

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, VelocityShares 3x will likely underperform.
One Month Beta |Analyze VelocityShares 3x Long Demand Trend
Check current 30 days VelocityShares 3x correlation with market (DOW)
β = 1.3419
VelocityShares 3x Large BetaVelocityShares 3x Long Beta Legend

VelocityShares 3x Long Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. VelocityShares 3x Long 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, the etf has beta coefficient of 1.3419 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, VelocityShares 3x will likely underperform. Additionally, VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of VelocityShares 3x is -1328.38. The daily returns are destributed with a variance of 21.97 and standard deviation of 4.69. The mean deviation of VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER is currently at 3.9. For similar time horizon, the selected benchmark (DOW) has volatility of 1.71
α
Alpha over DOW
=0.21
β
Beta against DOW=1.34
σ
Overall volatility
=4.69
Ir
Information ratio =0.06

Actual Return Volatility

VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER has volatility of 4.6875% on return distribution over 30 days investment horizon. DOW inherits 1.7052% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

VelocityShares 3x Volatility Factors

30 Days Market Risk

Not very volatile

Chance of Distress in 24 months

Very low

30 Days Economic Sensitivity

Totally responsive to market

Largest Trends

VelocityShares 3x Largest Period Trend

Investment Outlook

VelocityShares 3x Investment Opportunity
VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER has a volatility of 4.69 and is 2.74 times more volatile than DOW. 43% of all equities and portfolios are less risky than VelocityShares 3x. Compared to the overall equity markets, volatility of historical daily returns of VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER is lower than 43 (%) of all global equities and portfolios over the last 30 days. Use VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER to protect against small markets fluctuations. The etf experiences moderate downward daily trend and can be a good diversifier. Check odds of VelocityShares 3x to be traded at $25.47 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, VelocityShares 3x will likely underperform.

VelocityShares 3x correlation with market

Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding VelocityShares 3x Long Crude O and equity matching DJI index in the same portfolio.

Volatility Indicators

VelocityShares 3x Current Risk Indicators