Virtus Lifesci Biotech Etf Volatility

BBP Etf  USD 63.14  0.86  1.34%   
Virtus LifeSci appears to be very steady, given 3 months investment horizon. Virtus LifeSci Biotech owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.29, which indicates the etf had a 0.29% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Virtus LifeSci Biotech, which you can use to evaluate the volatility of the etf. Please review Virtus LifeSci's Coefficient Of Variation of 342.51, risk adjusted performance of 0.1922, and Semi Deviation of 0.7337 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Virtus LifeSci's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Virtus LifeSci 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 Virtus daily returns, and it is calculated using variance and standard deviation. We also use Virtus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Virtus LifeSci volatility.
  
Downward market volatility can be a perfect environment for investors who play the long game with Virtus LifeSci. They may decide to buy additional shares of Virtus LifeSci at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.

Moving together with Virtus Etf

  0.91XLV Health Care Select Sell-off TrendPairCorr
  0.93VHT Vanguard Health CarePairCorr
  0.97IBB iShares Biotechnology ETFPairCorr
  0.98XBI SPDR SP BiotechPairCorr
  0.93IXJ iShares Global HealthcarePairCorr
  0.93IYH iShares Healthcare ETFPairCorr
  0.93FHLC Fidelity MSCI HealthPairCorr

Moving against Virtus Etf

  0.69BDRY Breakwave Dry BulkPairCorr

Virtus LifeSci Market Sensitivity And Downside Risk

Virtus LifeSci's beta coefficient measures the volatility of Virtus 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 Virtus etf's returns against your selected market. In other words, Virtus LifeSci's beta of 0.68 provides an investor with an approximation of how much risk Virtus LifeSci etf can potentially add to one of your existing portfolios. Virtus LifeSci Biotech has relatively low volatility with skewness of 0.01 and kurtosis of -0.37. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Virtus LifeSci'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 Virtus LifeSci'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 Virtus LifeSci Biotech Demand Trend
Check current 90 days Virtus LifeSci correlation with market (Dow Jones Industrial)

Virtus Beta

    
  0.68  
Virtus 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

    
  1.25  
It is essential to understand the difference between upside risk (as represented by Virtus LifeSci's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Virtus LifeSci's daily returns or price. Since the actual investment returns on holding a position in virtus 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 Virtus LifeSci.

Virtus LifeSci Biotech Etf Volatility Analysis

Volatility refers to the frequency at which Virtus LifeSci etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Virtus LifeSci's price changes. Investors will then calculate the volatility of Virtus LifeSci'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 Virtus LifeSci's volatility:

Historical Volatility

This type of etf volatility measures Virtus LifeSci's fluctuations based on previous trends. It's commonly used to predict Virtus LifeSci'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 Virtus LifeSci'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 Virtus LifeSci'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. Virtus LifeSci Biotech 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.

Virtus LifeSci Projected Return Density Against Market

Considering the 90-day investment horizon Virtus LifeSci has a beta of 0.6817 suggesting as returns on the market go up, Virtus LifeSci average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Virtus LifeSci Biotech 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 Virtus LifeSci or Virtus 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 Virtus LifeSci'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 Virtus 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.
Virtus LifeSci Biotech has an alpha of 0.2913, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Virtus LifeSci's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how virtus etf's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Virtus LifeSci 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.

Virtus LifeSci Etf Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Virtus LifeSci is 347.58. The daily returns are distributed with a variance of 1.56 and standard deviation of 1.25. The mean deviation of Virtus LifeSci Biotech is currently at 1.01. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.64
α
Alpha over Dow Jones
0.29
β
Beta against Dow Jones0.68
σ
Overall volatility
1.25
Ir
Information ratio 0.21

Virtus LifeSci Etf Return Volatility

Virtus LifeSci historical daily return volatility represents how much of Virtus LifeSci etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF has volatility of 1.248% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.6587% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Virtus LifeSci Volatility

Volatility is a rate at which the price of Virtus LifeSci 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 Virtus LifeSci may increase or decrease. In other words, similar to Virtus's beta indicator, it measures the risk of Virtus LifeSci and helps estimate the fluctuations that may happen in a short period of time. So if prices of Virtus LifeSci 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 Virtus LifeSci's volatility to invest better

Higher Virtus LifeSci's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Virtus LifeSci Biotech 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. Virtus LifeSci Biotech 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 Virtus LifeSci Biotech investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Virtus LifeSci'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 Virtus LifeSci's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Virtus LifeSci Investment Opportunity

Virtus LifeSci Biotech has a volatility of 1.25 and is 1.89 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than Virtus LifeSci. You can use Virtus LifeSci Biotech to protect your portfolios against small market fluctuations. The etf experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Virtus LifeSci to be traded at $61.25 in 90 days.

Weak diversification

The correlation between Virtus LifeSci Biotech and DJI 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 Virtus LifeSci Biotech and DJI in the same portfolio, assuming nothing else is changed.

Virtus LifeSci Additional Risk Indicators

The analysis of Virtus LifeSci'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 Virtus LifeSci's investment and either accepting that risk or mitigating it. Along with some common measures of Virtus LifeSci 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.
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.

Virtus LifeSci 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 Virtus LifeSci 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. Virtus LifeSci'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, Virtus LifeSci'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 Virtus LifeSci Biotech.

Additional Information and Resources on Investing in Virtus Etf

When determining whether Virtus LifeSci Biotech is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Virtus Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Virtus Lifesci Biotech Etf. Highlighted below are key reports to facilitate an investment decision about Virtus Lifesci Biotech Etf:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Virtus LifeSci Biotech. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
The market value of Virtus LifeSci Biotech is measured differently than its book value, which is the value of Virtus that is recorded on the company's balance sheet. Investors also form their own opinion of Virtus LifeSci's value that differs from its market value or its book value, called intrinsic value, which is Virtus LifeSci's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Virtus LifeSci's market value can be influenced by many factors that don't directly affect Virtus LifeSci's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Virtus LifeSci's value and its price as these two are different measures arrived at by different means. Investors typically determine if Virtus LifeSci is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Virtus LifeSci's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.