Franklin Liberty Intermediate Etf Volatility
| FLMI Etf | USD 24.20 0.04 0.17% |
We consider Franklin Liberty very steady. Franklin Liberty Int secures Sharpe Ratio (or Efficiency) of 0.0693, which denotes the etf had a 0.0693% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Franklin Liberty Intermediate, which you can use to evaluate the volatility of the entity. Please confirm Franklin Liberty's Downside Deviation of 0.3724, semi deviation of 0.2923, and Mean Deviation of 0.2279 to check if the risk estimate we provide is consistent with the expected return of 0.0227%. Key indicators related to Franklin Liberty's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Franklin Liberty 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 Franklin daily returns, and it is calculated using variance and standard deviation. We also use Franklin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Franklin Liberty volatility.
Franklin |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Franklin Liberty 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 Franklin Liberty at lower prices. For example, an investor can purchase Franklin 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 Franklin Liberty'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 Franklin Etf
| 0.87 | HYD | VanEck High Yield | PairCorr |
| 0.91 | SHYD | VanEck Short High | PairCorr |
| 0.89 | FMHI | First Trust Municipal | PairCorr |
| 0.91 | HYMU | BlackRock High Yield | PairCorr |
| 0.71 | DSJA | DSJA | PairCorr |
| 0.67 | RSPY | Tuttle Capital Management | PairCorr |
| 0.87 | MPAY | Akros Monthly Payout | PairCorr |
Moving against Franklin Etf
Franklin Liberty Market Sensitivity And Downside Risk
Franklin Liberty's beta coefficient measures the volatility of Franklin 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 Franklin etf's returns against your selected market. In other words, Franklin Liberty's beta of -0.01 provides an investor with an approximation of how much risk Franklin Liberty etf can potentially add to one of your existing portfolios. Franklin Liberty Intermediate exhibits very low volatility with skewness of 0.0 and kurtosis of 0.97. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Franklin Liberty'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 Franklin Liberty'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 Franklin Liberty Int Demand TrendCheck current 90 days Franklin Liberty correlation with market (NYSE Composite)Franklin Beta |
Franklin 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 | 0.33 |
It is essential to understand the difference between upside risk (as represented by Franklin Liberty's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Franklin Liberty's daily returns or price. Since the actual investment returns on holding a position in franklin 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 Franklin Liberty.
Franklin Liberty Int Etf Volatility Analysis
Volatility refers to the frequency at which Franklin Liberty etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Franklin Liberty's price changes. Investors will then calculate the volatility of Franklin Liberty'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 Franklin Liberty's volatility:
Historical Volatility
This type of etf volatility measures Franklin Liberty's fluctuations based on previous trends. It's commonly used to predict Franklin Liberty'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 Franklin Liberty'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 Franklin Liberty'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. Franklin Liberty Int 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.
Franklin Liberty Projected Return Density Against Market
Given the investment horizon of 90 days Franklin Liberty Intermediate has a beta of -0.01 . This usually indicates as returns on the benchmark increase, returns on holding Franklin Liberty are expected to decrease at a much lower rate. During a bear market, however, Franklin Liberty Intermediate 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 Franklin Liberty or Franklin Templeton Investments 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 Franklin Liberty'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 Franklin 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.
Franklin Liberty Intermediate has an alpha of 0.0058, implying that it can generate a 0.0058 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Franklin Liberty 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.Franklin Liberty Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Franklin Liberty is 1443.92. The daily returns are distributed with a variance of 0.11 and standard deviation of 0.33. The mean deviation of Franklin Liberty Intermediate is currently at 0.23. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.01 | |
β | Beta against NYSE Composite | -0.01 | |
σ | Overall volatility | 0.33 | |
Ir | Information ratio | -0.23 |
Franklin Liberty Etf Return Volatility
Franklin Liberty historical daily return volatility represents how much of Franklin Liberty etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Etf inherits 0.3274% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.637% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Franklin Liberty Volatility
Volatility is a rate at which the price of Franklin Liberty 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 Franklin Liberty may increase or decrease. In other words, similar to Franklin's beta indicator, it measures the risk of Franklin Liberty and helps estimate the fluctuations that may happen in a short period of time. So if prices of Franklin Liberty 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 market conditions, the fund invests at least 80 percent of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Franklin Liberty is traded on NYSEARCA Exchange in the United States.
Franklin Liberty'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 Franklin Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Franklin Liberty's price varies over time.
3 ways to utilize Franklin Liberty's volatility to invest better
Higher Franklin Liberty's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Franklin Liberty Int 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. Franklin Liberty Int 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 Franklin Liberty Int investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Franklin Liberty'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 Franklin Liberty's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Franklin Liberty Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.64 and is 1.94 times more volatile than Franklin Liberty Intermediate. 2 percent of all equities and portfolios are less risky than Franklin Liberty. You can use Franklin Liberty Intermediate to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of Franklin Liberty to be traded at $25.41 in 90 days.Good diversification
The correlation between Franklin Liberty Intermediate and NYA is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Liberty Intermediate and NYA in the same portfolio, assuming nothing else is changed.
Franklin Liberty Additional Risk Indicators
The analysis of Franklin Liberty'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 Franklin Liberty's investment and either accepting that risk or mitigating it. Along with some common measures of Franklin Liberty 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 | 0.0194 | |||
| Market Risk Adjusted Performance | (0.49) | |||
| Mean Deviation | 0.2279 | |||
| Semi Deviation | 0.2923 | |||
| Downside Deviation | 0.3724 | |||
| Coefficient Of Variation | 2186.01 | |||
| Standard Deviation | 0.3279 |
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.
Franklin Liberty 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 Franklin Liberty 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. Franklin Liberty'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, Franklin Liberty'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 Franklin Liberty Intermediate.
When determining whether Franklin Liberty Int offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Franklin Liberty's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Franklin Liberty Intermediate Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Franklin Liberty Intermediate Etf: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Franklin Liberty Intermediate. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
The market value of Franklin Liberty Int is measured differently than its book value, which is the value of Franklin that is recorded on the company's balance sheet. Investors also form their own opinion of Franklin Liberty's value that differs from its market value or its book value, called intrinsic value, which is Franklin Liberty'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 Franklin Liberty's market value can be influenced by many factors that don't directly affect Franklin Liberty'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 Franklin Liberty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Franklin Liberty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Franklin Liberty'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.