# Fondo De (Chile) Volatility

CFINRENTAS | CLP 1,504 1.65 0.11% |

Fondo de Inversion secures Sharpe Ratio (or Efficiency) of -0.1, which denotes the etf had a -0.1% return per unit of risk over the last 3 months. Fondo de Inversion exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Fondo De's Standard Deviation of 0.9173, mean deviation of 0.473, and Variance of 0.8414 to check the risk estimate we provide.

Fondo |

Fondo De 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 Fondo daily returns, and it is calculated using variance and standard deviation. We also use Fondo's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Fondo De volatility.

Downward market volatility can be a perfect environment for investors who play the long game with Fondo De. They may decide to buy additional shares of Fondo De at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.

## Fondo De Market Sensitivity And Downside Risk

Fondo De's beta coefficient measures the volatility of Fondo 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 Fondo etf's returns against your selected market. In other words, Fondo De's beta of -0.22 provides an investor with an approximation of how much risk Fondo De etf can potentially add to one of your existing portfolios. Fondo de Inversion exhibits very low volatility with skewness of -0.29 and kurtosis of 11.74. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fondo De'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 Fondo De'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 Fondo de Inversion Demand TrendCheck current 90 days Fondo De correlation with market (Dow Jones Industrial)## Fondo Beta |

Fondo 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 | 0.95 |

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

## Fondo de Inversion Etf Volatility Analysis

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

### Historical Volatility

This type of etf volatility measures Fondo De's fluctuations based on previous trends. It's commonly used to predict Fondo De'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 Fondo De'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 Fondo De'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. Fondo de Inversion 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.

## Fondo De Projected Return Density Against Market

Assuming the 90 days trading horizon Fondo de Inversion has a beta of -0.2226 suggesting as returns on the benchmark increase, returns on holding Fondo De are expected to decrease at a much lower rate. During a bear market, however, Fondo de Inversion 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 Fondo De or Fondo 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 Fondo De'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 Fondo 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.

Fondo de Inversion has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |

Returns |

## What Drives a Fondo De 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.## Fondo De Etf Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Fondo De is -998.1. The daily returns are distributed with a variance of 0.9 and standard deviation of 0.95. The mean deviation of Fondo de Inversion is currently at 0.5. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79

α | Alpha over Dow Jones | -0.08 | |

β | Beta against Dow Jones | -0.22 | |

σ | Overall volatility | 0.95 | |

Ir | Information ratio | -0.18 |

## Fondo De Etf Return Volatility

Fondo De historical daily return volatility represents how much of Fondo De etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF accepts 0.9464% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8153% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About Fondo De Volatility

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

Higher Fondo De's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Fondo de Inversion 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. Fondo de Inversion 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 Fondo de Inversion investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Fondo De'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 Fondo De's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## Fondo De Investment Opportunity

Fondo de Inversion has a volatility of 0.95 and is 1.16 times more volatile than Dow Jones Industrial.**8 percent**of all equities and portfolios are less risky than Fondo De. You can use Fondo de Inversion to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend and little activity. Check odds of Fondo De to be traded at 1489.25 in 90 days.

### Good diversification

The correlation between Fondo de Inversion and DJI is

**-0.19**(i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fondo de Inversion and DJI in the same portfolio, assuming nothing else is changed.## Fondo De Additional Risk Indicators

The analysis of Fondo De'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 Fondo De's investment and either accepting that risk or mitigating it. Along with some common measures of Fondo De 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 | (0.07) | |||

Market Risk Adjusted Performance | 0.4516 | |||

Mean Deviation | 0.473 | |||

Coefficient Of Variation | (1,039) | |||

Standard Deviation | 0.9173 | |||

Variance | 0.8414 | |||

Information Ratio | (0.18) |

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.

## Fondo De 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 Fondo De 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. Fondo De'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, Fondo De'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 Fondo de Inversion.

## Other Information on Investing in Fondo Etf

Fondo De financial ratios help investors to determine whether Fondo Etf is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Fondo with respect to the benefits of owning Fondo De security.