Vanguard World (Mexico) Volatility
| VDE Etf | MXN 2,252 21.84 0.98% |
Vanguard World appears to be very steady, given 3 months investment horizon. Vanguard World owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.19, which indicates the etf had a 0.19% return per unit of risk over the last 3 months. We have found twenty-one technical indicators for Vanguard World, which you can use to evaluate the volatility of the etf. Please review Vanguard World's Risk Adjusted Performance of 0.0741, variance of 5.01, and Coefficient Of Variation of 921.72 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Vanguard World's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Vanguard World Etf 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 Vanguard daily returns, and it is calculated using variance and standard deviation. We also use Vanguard's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vanguard World volatility.
Vanguard |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vanguard World 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 Vanguard World at lower prices. For example, an investor can purchase Vanguard 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 Vanguard World'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 against Vanguard Etf
| 0.74 | BND | Vanguard Bond Index | PairCorr |
| 0.69 | BNDX | Vanguard Charlotte Funds | PairCorr |
| 0.65 | ICLN | iShares Global Clean | PairCorr |
Vanguard World Market Sensitivity And Downside Risk
Vanguard World's beta coefficient measures the volatility of Vanguard etf 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 Vanguard etf's returns against your selected market. In other words, Vanguard World's beta of -0.59 provides an investor with an approximation of how much risk Vanguard World etf can potentially add to one of your existing portfolios. Vanguard World exhibits very low volatility with skewness of 0.47 and kurtosis of 13.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vanguard World's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vanguard World's etf 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 Vanguard World Demand TrendCheck current 90 days Vanguard World correlation with market (NYSE Composite)Vanguard Beta |
Vanguard 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 | 1.27 |
It is essential to understand the difference between upside risk (as represented by Vanguard World's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vanguard World's daily returns or price. Since the actual investment returns on holding a position in vanguard etf 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 Vanguard World.
Vanguard World Etf Volatility Analysis
Volatility refers to the frequency at which Vanguard World etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vanguard World's price changes. Investors will then calculate the volatility of Vanguard World's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf 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 Vanguard World's volatility:
Historical Volatility
This type of etf volatility measures Vanguard World's fluctuations based on previous trends. It's commonly used to predict Vanguard World's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Vanguard World's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Vanguard World'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. Vanguard World 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.
Vanguard World Projected Return Density Against Market
Assuming the 90 days trading horizon Vanguard World has a beta of -0.5857 . This entails as returns on the benchmark increase, returns on holding Vanguard World are expected to decrease at a much lower rate. During a bear market, however, Vanguard World is likely to outperform the market.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 Vanguard World or Vanguard 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 Vanguard World's price will be affected by overall etf 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 Vanguard etf'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.
Vanguard World has an alpha of 0.2794, implying that it can generate a 0.28 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Vanguard World Price Volatility?
Several factors can influence a etf'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.Vanguard World Etf Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Vanguard World is 531.79. The daily returns are distributed with a variance of 1.61 and standard deviation of 1.27. The mean deviation of Vanguard World is currently at 0.6. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.28 | |
β | Beta against NYSE Composite | -0.59 | |
σ | Overall volatility | 1.27 | |
Ir | Information ratio | 0.07 |
Vanguard World Etf Return Volatility
Vanguard World historical daily return volatility represents how much of Vanguard World etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF assumes 1.2692% volatility of returns over the 90 days investment horizon. By contrast, NYSE Composite accepts 0.637% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vanguard World Volatility
Volatility is a rate at which the price of Vanguard World 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 Vanguard World may increase or decrease. In other words, similar to Vanguard's beta indicator, it measures the risk of Vanguard World and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vanguard World 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.3 ways to utilize Vanguard World's volatility to invest better
Higher Vanguard World's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vanguard World etf 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. Vanguard World etf 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 Vanguard World investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vanguard World's etf 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 Vanguard World's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vanguard World Investment Opportunity
Vanguard World has a volatility of 1.27 and is 1.98 times more volatile than NYSE Composite. 11 percent of all equities and portfolios are less risky than Vanguard World. You can use Vanguard World to enhance the returns of your portfolios. The etf experiences a moderate upward volatility. Check odds of Vanguard World to be traded at 2477.2 in 90 days.Good diversification
The correlation between Vanguard World and NYA is -0.16 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard World and NYA in the same portfolio, assuming nothing else is changed.
Vanguard World Additional Risk Indicators
The analysis of Vanguard World'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 Vanguard World's investment and either accepting that risk or mitigating it. Along with some common measures of Vanguard World etf'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 | 0.0741 | |||
| Market Risk Adjusted Performance | (0.39) | |||
| Mean Deviation | 0.9758 | |||
| Coefficient Of Variation | 921.72 | |||
| Standard Deviation | 2.24 | |||
| Variance | 5.01 | |||
| Information Ratio | 0.0686 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Vanguard World 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 Vanguard World 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. Vanguard World'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, Vanguard World'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 Vanguard World.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard World. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Note that the Vanguard World information on this page should be used as a complementary analysis to other Vanguard World's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.