Guggenheim Municipal Income Fund Volatility

GIJIX Fund  USD 11.39  0.02  0.18%   
We consider Guggenheim Municipal very steady. Guggenheim Municipal holds Efficiency (Sharpe) Ratio of 0.015, which attests that the entity had a 0.015% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Guggenheim Municipal, which you can use to evaluate the volatility of the entity. Please check out Guggenheim Municipal's Downside Deviation of 0.2719, risk adjusted performance of 0.0306, and Market Risk Adjusted Performance of (0.14) to validate if the risk estimate we provide is consistent with the expected return of 0.0031%. Key indicators related to Guggenheim Municipal's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Guggenheim Municipal 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 Guggenheim daily returns, and it is calculated using variance and standard deviation. We also use Guggenheim's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Guggenheim Municipal volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Guggenheim Municipal 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 Guggenheim Municipal at lower prices. For example, an investor can purchase Guggenheim 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 Guggenheim Municipal'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 Guggenheim Mutual Fund

  0.62USG USCF Gold Strategy Symbol ChangePairCorr
  0.63TVRCX Guggenheim DirectionalPairCorr
  0.63TVRAX Guggenheim DirectionalPairCorr
  0.63TVRIX Guggenheim DirectionalPairCorr
  0.71TVVFX Guggenheim Rbp Large-capPairCorr
  0.71TVVCX Guggenheim Rbp Large-capPairCorr
  0.71TVVAX Guggenheim Rbp Large-capPairCorr

Guggenheim Municipal Market Sensitivity And Downside Risk

Guggenheim Municipal's beta coefficient measures the volatility of Guggenheim 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 Guggenheim mutual fund's returns against your selected market. In other words, Guggenheim Municipal's beta of -0.0502 provides an investor with an approximation of how much risk Guggenheim Municipal mutual fund can potentially add to one of your existing portfolios. Guggenheim Municipal Income exhibits very low volatility with skewness of -0.36 and kurtosis of 2.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Guggenheim Municipal'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 Guggenheim Municipal'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 Guggenheim Municipal Demand Trend
Check current 90 days Guggenheim Municipal correlation with market (NYSE Composite)

Guggenheim Beta

    
  -0.0502  
Guggenheim 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

    
  0.21  
It is essential to understand the difference between upside risk (as represented by Guggenheim Municipal's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Guggenheim Municipal's daily returns or price. Since the actual investment returns on holding a position in guggenheim 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 Guggenheim Municipal.

Guggenheim Municipal Mutual Fund Volatility Analysis

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

Historical Volatility

This type of fund volatility measures Guggenheim Municipal's fluctuations based on previous trends. It's commonly used to predict Guggenheim Municipal'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 Guggenheim Municipal'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 Guggenheim Municipal'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. Guggenheim Municipal 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.

Guggenheim Municipal Projected Return Density Against Market

Assuming the 90 days horizon Guggenheim Municipal Income has a beta of -0.0502 . This usually indicates as returns on benchmark increase, returns on holding Guggenheim Municipal are expected to decrease at a much lower rate. During the bear market, however, Guggenheim Municipal Income 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 Guggenheim Municipal or Guggenheim 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 Guggenheim Municipal'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 Guggenheim 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.
Guggenheim Municipal Income has an alpha of 0.0138, implying that it can generate a 0.0138 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Guggenheim Municipal's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how guggenheim mutual fund'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 Guggenheim Municipal 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.

Guggenheim Municipal Mutual Fund Risk Measures

Assuming the 90 days horizon the coefficient of variation of Guggenheim Municipal is 6654.81. The daily returns are distributed with a variance of 0.04 and standard deviation of 0.21. The mean deviation of Guggenheim Municipal Income is currently at 0.14. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.01
β
Beta against NYSE Composite-0.05
σ
Overall volatility
0.21
Ir
Information ratio -0.57

Guggenheim Municipal Mutual Fund Return Volatility

Guggenheim Municipal historical daily return volatility represents how much of Guggenheim Municipal fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.2054% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Guggenheim Municipal Volatility

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

Higher Guggenheim Municipal's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Guggenheim Municipal 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. Guggenheim Municipal 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 Guggenheim Municipal investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Guggenheim Municipal'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 Guggenheim Municipal's fund 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.

Guggenheim Municipal Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.57 and is 2.71 times more volatile than Guggenheim Municipal Income. 1 percent of all equities and portfolios are less risky than Guggenheim Municipal. You can use Guggenheim Municipal Income to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Guggenheim Municipal to be traded at $11.28 in 90 days.

Good diversification

The correlation between GUGGENHEIM MUNICIPAL INCOME and NYA is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding GUGGENHEIM MUNICIPAL INCOME and NYA in the same portfolio, assuming nothing else is changed.

Guggenheim Municipal Additional Risk Indicators

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

Guggenheim Municipal 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 Guggenheim Municipal 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. Guggenheim Municipal'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, Guggenheim Municipal'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 Guggenheim Municipal Income.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Guggenheim Municipal Income. 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 gross domestic product.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for Guggenheim Mutual Fund analysis

When running Guggenheim Municipal's price analysis, check to measure Guggenheim Municipal'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 Guggenheim Municipal is operating at the current time. Most of Guggenheim Municipal's value examination focuses on studying past and present price action to predict the probability of Guggenheim Municipal's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Guggenheim Municipal's price. Additionally, you may evaluate how the addition of Guggenheim Municipal to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Guggenheim Municipal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guggenheim Municipal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guggenheim Municipal'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.