Amana Participation Fund Volatility
| AMAPX Fund | USD 9.57 0.01 0.10% |
We consider Amana Participation very steady. Amana Participation secures Sharpe Ratio (or Efficiency) of 0.0419, which signifies that the fund had a 0.0419% return per unit of standard deviation over the last 3 months. We have found twenty-eight technical indicators for Amana Participation Fund, which you can use to evaluate the volatility of the entity. Please confirm Amana Participation's risk adjusted performance of (0.01), and Mean Deviation of 0.0982 to double-check if the risk estimate we provide is consistent with the expected return of 0.0051%. Key indicators related to Amana Participation's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Amana Participation 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 Amana daily returns, and it is calculated using variance and standard deviation. We also use Amana's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Amana Participation volatility.
Amana |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Amana Participation 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 Amana Participation at lower prices. For example, an investor can purchase Amana 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 Amana Participation'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 Amana Mutual Fund
| 0.79 | AMDWX | Amana Developing World | PairCorr |
| 0.73 | AMIGX | Amana Growth | PairCorr |
| 0.79 | AMIDX | Amana Developing World | PairCorr |
| 0.7 | AMINX | Amana Income | PairCorr |
| 0.98 | AMIPX | Amana Participation | PairCorr |
| 0.7 | AMANX | Amana Income | PairCorr |
| 0.73 | AMAGX | Amana Growth | PairCorr |
| 0.64 | FGBMX | Fidelity New Markets | PairCorr |
Amana Participation Market Sensitivity And Downside Risk
Amana Participation's beta coefficient measures the volatility of Amana 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 Amana mutual fund's returns against your selected market. In other words, Amana Participation's beta of 0.0748 provides an investor with an approximation of how much risk Amana Participation mutual fund can potentially add to one of your existing portfolios. Amana Participation Fund exhibits very low volatility with skewness of -0.07 and kurtosis of 1.35. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Amana Participation'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 Amana Participation'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 Amana Participation Demand TrendCheck current 90 days Amana Participation correlation with market (NYSE Composite)Amana Beta |
Amana 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 | 0.12 |
It is essential to understand the difference between upside risk (as represented by Amana Participation's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Amana Participation's daily returns or price. Since the actual investment returns on holding a position in amana 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 Amana Participation.
Amana Participation Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Amana Participation fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Amana Participation's price changes. Investors will then calculate the volatility of Amana Participation'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 Amana Participation's volatility:
Historical Volatility
This type of fund volatility measures Amana Participation's fluctuations based on previous trends. It's commonly used to predict Amana Participation'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 Amana Participation'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 Amana Participation'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. Amana Participation 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.
Amana Participation Projected Return Density Against Market
Assuming the 90 days horizon Amana Participation has a beta of 0.0748 . This suggests as returns on the market go up, Amana Participation average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Amana Participation 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 Amana Participation or Amana 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 Amana Participation'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 Amana 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.
Amana Participation 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 Amana Participation 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.Amana Participation Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Amana Participation is 2387.29. The daily returns are distributed with a variance of 0.01 and standard deviation of 0.12. The mean deviation of Amana Participation Fund is currently at 0.09. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.64
α | Alpha over NYSE Composite | -0.0085 | |
β | Beta against NYSE Composite | 0.07 | |
σ | Overall volatility | 0.12 | |
Ir | Information ratio | -0.36 |
Amana Participation Mutual Fund Return Volatility
Amana Participation historical daily return volatility represents how much of Amana Participation fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.1207% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6246% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Amana Participation Volatility
Volatility is a rate at which the price of Amana Participation 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 Amana Participation may increase or decrease. In other words, similar to Amana's beta indicator, it measures the risk of Amana Participation and helps estimate the fluctuations that may happen in a short period of time. So if prices of Amana Participation 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.Under normal conditions, the fund invests at least 80 percent of its total net assets in short and intermediate-term Islamic income-producing investments. It invests at least 65 percent of its assets in securities rated within the four highest grades by a nationally-recognized rating agency and may invest up to 35 percent in unrated and high-yield notes and certificates, which may be considered equivalent to junk bonds. The fund is non-diversified.
Amana Participation'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 Amana Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Amana Participation's price varies over time.
3 ways to utilize Amana Participation's volatility to invest better
Higher Amana Participation's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Amana Participation 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. Amana Participation 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 Amana Participation investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Amana Participation'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 Amana Participation's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Amana Participation Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.62 and is 5.17 times more volatile than Amana Participation Fund. 1 percent of all equities and portfolios are less risky than Amana Participation. You can use Amana Participation Fund to enhance the returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of Amana Participation to be traded at $10.05 in 90 days.Weak diversification
The correlation between Amana Participation Fund and NYA is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Amana Participation Fund and NYA in the same portfolio, assuming nothing else is changed.
Amana Participation Additional Risk Indicators
The analysis of Amana Participation'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 Amana Participation's investment and either accepting that risk or mitigating it. Along with some common measures of Amana Participation 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 0.0982 | |||
| Semi Deviation | 0.0973 | |||
| Downside Deviation | 0.1857 | |||
| Coefficient Of Variation | 2885.14 | |||
| Standard Deviation | 0.1402 |
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.
Amana Participation 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 Amana Participation 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. Amana Participation'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, Amana Participation'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 Amana Participation Fund.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Amana Participation 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 american community survey. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..