Intermediate Bond Fund Volatility
| IBFFX Fund | USD 12.32 0.02 0.16% |
We consider Intermediate Bond very steady. Intermediate Bond holds Efficiency (Sharpe) Ratio of 0.027, which attests that the entity had a 0.027% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Intermediate Bond, which you can use to evaluate the volatility of the entity. Please check out Intermediate Bond's Downside Deviation of 0.319, market risk adjusted performance of (0.01), and Risk Adjusted Performance of 0.0046 to validate if the risk estimate we provide is consistent with the expected return of 0.0068%. Key indicators related to Intermediate Bond's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Intermediate Bond Mutual 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 Intermediate daily returns, and it is calculated using variance and standard deviation. We also use Intermediate's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Intermediate Bond volatility.
Intermediate |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Intermediate Bond 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 Intermediate Bond at lower prices. For example, an investor can purchase Intermediate 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 Intermediate Bond'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 Intermediate Mutual Fund
| 0.66 | AMFCX | American Mutual | PairCorr |
| 0.64 | AMFFX | American Mutual | PairCorr |
| 0.72 | RNCCX | American Funds Income | PairCorr |
| 0.94 | FPPPX | American Funds Prese | PairCorr |
| 0.68 | RNGGX | New Economy Fund | PairCorr |
| 0.68 | RNGFX | New Economy Fund | PairCorr |
Intermediate Bond Market Sensitivity And Downside Risk
Intermediate Bond's beta coefficient measures the volatility of Intermediate mutual 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 Intermediate mutual fund's returns against your selected market. In other words, Intermediate Bond's beta of 0.15 provides an investor with an approximation of how much risk Intermediate Bond mutual fund can potentially add to one of your existing portfolios. Intermediate Bond Fund exhibits very low volatility with skewness of -0.93 and kurtosis of 2.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Intermediate Bond's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Intermediate Bond's mutual 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 Intermediate Bond Demand TrendCheck current 90 days Intermediate Bond correlation with market (NYSE Composite)Intermediate Beta |
Intermediate 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 | 0.25 |
It is essential to understand the difference between upside risk (as represented by Intermediate Bond's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Intermediate Bond's daily returns or price. Since the actual investment returns on holding a position in intermediate mutual 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 Intermediate Bond.
Intermediate Bond Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Intermediate Bond fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Intermediate Bond's price changes. Investors will then calculate the volatility of Intermediate Bond's mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual 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 Intermediate Bond's volatility:
Historical Volatility
This type of fund volatility measures Intermediate Bond's fluctuations based on previous trends. It's commonly used to predict Intermediate Bond's future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Intermediate Bond'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 Intermediate Bond'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. Intermediate Bond 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.
Intermediate Bond Projected Return Density Against Market
Assuming the 90 days horizon Intermediate Bond has a beta of 0.1486 . This usually indicates as returns on the market go up, Intermediate Bond average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Intermediate Bond Fund will be expected to be much smaller as well.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 Intermediate Bond or American Funds 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 Intermediate Bond's price will be affected by overall mutual 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 Intermediate 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.
Intermediate Bond Fund 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 Intermediate Bond 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.Intermediate Bond Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Intermediate Bond is 3697.23. The daily returns are distributed with a variance of 0.06 and standard deviation of 0.25. The mean deviation of Intermediate Bond Fund is currently at 0.19. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.59
α | Alpha over NYSE Composite | -0.02 | |
β | Beta against NYSE Composite | 0.15 | |
σ | Overall volatility | 0.25 | |
Ir | Information ratio | -0.37 |
Intermediate Bond Mutual Fund Return Volatility
Intermediate Bond historical daily return volatility represents how much of Intermediate Bond fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.2501% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.5812% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Intermediate Bond Volatility
Volatility is a rate at which the price of Intermediate Bond 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 Intermediate Bond may increase or decrease. In other words, similar to Intermediate's beta indicator, it measures the risk of Intermediate Bond and helps estimate the fluctuations that may happen in a short period of time. So if prices of Intermediate Bond 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.The fund maintains a portfolio of bonds, other debt securities and money market instruments having a dollar-weighted average effective maturity of no less than three years and no greater than five years under normal market conditions. It invests primarily in bonds and other debt securities with quality ratings of A- or better or A3 or better or unrated but determined to be of equivalent quality by the funds investment adviser. The fund primarily invests in debt securities denominated in U.S. dollars.
Intermediate Bond'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 Intermediate Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Intermediate Bond's price varies over time.
3 ways to utilize Intermediate Bond's volatility to invest better
Higher Intermediate Bond's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Intermediate Bond 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. Intermediate Bond 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 Intermediate Bond investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Intermediate Bond'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 Intermediate Bond's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Intermediate Bond Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.58 and is 2.32 times more volatile than Intermediate Bond Fund. 2 percent of all equities and portfolios are less risky than Intermediate Bond. You can use Intermediate Bond Fund to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Intermediate Bond to be traded at $12.2 in 90 days.Weak diversification
The correlation between Intermediate Bond Fund and NYA is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Bond Fund and NYA in the same portfolio, assuming nothing else is changed.
Intermediate Bond Additional Risk Indicators
The analysis of Intermediate Bond'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 Intermediate Bond's investment and either accepting that risk or mitigating it. Along with some common measures of Intermediate Bond mutual 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 | 0.0046 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 0.1953 | |||
| Semi Deviation | 0.2509 | |||
| Downside Deviation | 0.319 | |||
| Coefficient Of Variation | 3246.65 | |||
| Standard Deviation | 0.2502 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Intermediate Bond 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 Intermediate Bond 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. Intermediate Bond'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, Intermediate Bond'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 Intermediate Bond Fund.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Intermediate Bond Fund. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the Intermediate Bond information on this page should be used as a complementary analysis to other Intermediate Bond'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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.