Russell Index Performance

RUT
 Index
  

 2,021  4.73  0.23%   

The index holds a Beta of 0.0, which implies not very significant fluctuations relative to the market. Let's try to break down what Russell's beta means in this case. the returns on MARKET and Russell 2000 are completely uncorrelated. Although it is important to respect Russell 2000 current trending patterns, it is better to be realistic regarding the information on the equity's existing price patterns. The philosophy towards forecasting future performance of any index is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Russell 2000 technical indicators, you can presently evaluate if the expected return of 0.17% will be sustainable into the future.
  

Russell 2000 Relative Risk vs. Return Landscape

If you would invest  184,030  in Russell 2000 on May 17, 2022 and sell it today you would earn a total of  18,105  from holding Russell 2000 or generate 9.84% return on investment over 90 days. Russell 2000 is currently generating 0.1666% in daily expected returns and assumes 1.7498% risk (volatility on return distribution) over the 90 days horizon. In different words, 15% of indexs are less volatile than Russell, and 97% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Russell 2000 is expected to generate 1.39 times more return on investment than the market. However, the company is 1.39 times more volatile than its market benchmark. It trades about 0.1 of its potential returns per unit of risk. The DOW is currently generating roughly 0.05 per unit of risk.

Russell 2000 Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Russell 2000's investment risk. Standard deviation is the most common way to measure market volatility of indexs, such as Russell 2000 , and traders can use it to determine the average amount a Russell 2000's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0952

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Estimated Market Risk
 1.75
  actual daily
 
 15 %
of total potential
 
1515
Expected Return
 0.17
  actual daily
 
 3 %
of total potential
 
33
Risk-Adjusted Return
 0.1
  actual daily
 
 7 %
of total potential
 
77
Based on monthly moving average Russell 2000 is performing at about 7% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Russell 2000 by adding it to a well-diversified portfolio.

About Russell 2000 Performance

To evaluate Russell 2000 Index as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Russell 2000 generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Russell Index's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Russell 2000 stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Russell's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.

Things to note about Russell 2000

Checking the ongoing alerts about Russell 2000 for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Russell 2000 help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Check out Your Current Watchlist. Note that the Russell 2000 information on this page should be used as a complementary analysis to other Russell 2000'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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Tools for Russell Index

When running Russell 2000 price analysis, check to measure Russell 2000's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Russell 2000 is operating at the current time. Most of Russell 2000's value examination focuses on studying past and present price action to predict the probability of Russell 2000's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Russell 2000's price. Additionally, you may evaluate how the addition of Russell 2000 to your portfolios can decrease your overall portfolio volatility.
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