Proshares Hedge Replication Etf Volatility

HDG Etf  USD 48.88  0.05  0.10%   
We consider ProShares Hedge very steady. ProShares Hedge Repl maintains Sharpe Ratio (i.e., Efficiency) of 0.0774, which implies the entity had 0.0774% return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of an etf is to use all available market data together with etf-specific technical indicators that cannot be diversified away. We have found twenty-nine technical indicators for ProShares Hedge Repl, which you can use to evaluate the future volatility of the etf. Please check ProShares Hedge's Risk Adjusted Performance of 0.0464, coefficient of variation of 1236.24, and Semi Deviation of 0.373 to confirm if the risk estimate we provide is consistent with the expected return of 0.0343%. Key indicators related to ProShares Hedge's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
ProShares Hedge 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 ProShares daily returns, and it is calculated using variance and standard deviation. We also use ProShares's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ProShares Hedge volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ProShares Hedge 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 ProShares Hedge at lower prices. For example, an investor can purchase ProShares 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 ProShares Hedge'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 ProShares Etf

  0.64DHF BNY Mellon HighPairCorr
  0.76ENTR ERShares EntrepreneursPairCorr

ProShares Hedge Market Sensitivity And Downside Risk

ProShares Hedge's beta coefficient measures the volatility of ProShares etf compared to the systematic risk of the entire stock 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 ProShares etf's returns against your selected market. In other words, ProShares Hedge's beta of 0.47 provides an investor with an approximation of how much risk ProShares Hedge etf can potentially add to one of your existing portfolios.
ProShares Hedge Replication exhibits very low volatility with skewness of -0.3 and kurtosis of 2.23. However, we advise investors to further study ProShares Hedge Replication technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ProShares Hedge'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 ProShares Hedge'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 stocks as prices fall.
3 Months Beta |Analyze ProShares Hedge Repl Demand Trend
Check current 90 days ProShares Hedge correlation with market (NYSE Composite)

ProShares Beta

    
  0.47  
ProShares standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

    
  0.44  
It is essential to understand the difference between upside risk (as represented by ProShares Hedge's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ProShares Hedge's daily returns or price. Since the actual investment returns on holding a position in proshares 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 ProShares Hedge.

ProShares Hedge Repl Etf Volatility Analysis

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

Historical Volatility

This type of etf volatility measures ProShares Hedge's fluctuations based on previous trends. It's commonly used to predict ProShares Hedge'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 ProShares Hedge'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 ProShares Hedge'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. ProShares Hedge Repl 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.
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ProShares Hedge Projected Return Density Against Market

Considering the 90-day investment horizon ProShares Hedge has a beta of 0.4671 . This usually indicates as returns on the market go up, ProShares Hedge average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding ProShares Hedge Replication 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 ProShares Hedge or ProShares 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 ProShares Hedge'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 ProShares 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.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. ProShares Hedge Repl is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
ProShares Hedge's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how proshares 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 ProShares Hedge 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.

ProShares Hedge Etf Risk Measures

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 ProShares Hedge or ProShares 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 ProShares Hedge'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 ProShares 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. Considering the 90-day investment horizon the coefficient of variation of ProShares Hedge is 1291.34. The daily returns are distributed with a variance of 0.2 and standard deviation of 0.44. The mean deviation of ProShares Hedge Replication is currently at 0.31. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α
Alpha over NYSE Composite
-0.05
β
Beta against NYSE Composite0.47
σ
Overall volatility
0.44
Ir
Information ratio -0.3

ProShares Hedge Etf Return Volatility

ProShares Hedge historical daily return volatility represents how much of ProShares Hedge etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Exchange Traded Fund has volatility of 0.4432% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.646% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About ProShares Hedge Volatility

Volatility is a rate at which the price of ProShares Hedge 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 ProShares Hedge may increase or decrease. In other words, similar to ProShares's beta indicator, it measures the risk of ProShares Hedge and helps estimate the fluctuations that may happen in a short period of time. So if prices of ProShares Hedge 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.
The fund invests in financial instruments that ProShare Advisors believes, in combination, should track the performance of the benchmark. Hedge Replication is traded on NYSEARCA Exchange in the United States.
ProShares Hedge'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 ProShares Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ProShares Hedge's price varies over time.

3 ways to utilize ProShares Hedge's volatility to invest better

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

ProShares Hedge Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.65 and is 1.48 times more volatile than ProShares Hedge Replication. of all equities and portfolios are less risky than ProShares Hedge. Compared to the overall equity markets, volatility of historical daily returns of ProShares Hedge Replication is lower than 3 () of all global equities and portfolios over the last 90 days. Use ProShares Hedge Replication to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The etf experiences a normal upward fluctuation. Check odds of ProShares Hedge to be traded at $51.32 in 90 days.

Poor diversification

The correlation between ProShares Hedge Replication and NYA is 0.69 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Hedge Replication and NYA in the same portfolio, assuming nothing else is changed.

ProShares Hedge Additional Risk Indicators

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

ProShares Hedge 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 ProShares Hedge 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. ProShares Hedge'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, ProShares Hedge'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 ProShares Hedge Replication.
When determining whether ProShares Hedge Repl is a strong investment it is important to analyze ProShares Hedge's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ProShares Hedge's future performance. For an informed investment choice regarding ProShares Etf, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in ProShares Hedge Replication. Also, note that the market value of any ETF could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.
Note that the ProShares Hedge Repl information on this page should be used as a complementary analysis to other ProShares Hedge's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for ProShares Etf analysis

When running ProShares Hedge's price analysis, check to measure ProShares Hedge'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 ProShares Hedge is operating at the current time. Most of ProShares Hedge's value examination focuses on studying past and present price action to predict the probability of ProShares Hedge's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ProShares Hedge's price. Additionally, you may evaluate how the addition of ProShares Hedge to your portfolios can decrease your overall portfolio volatility.
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The market value of ProShares Hedge Repl is measured differently than its book value, which is the value of ProShares that is recorded on the company's balance sheet. Investors also form their own opinion of ProShares Hedge's value that differs from its market value or its book value, called intrinsic value, which is ProShares Hedge'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 ProShares Hedge's market value can be influenced by many factors that don't directly affect ProShares Hedge'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 ProShares Hedge's value and its price as these two are different measures arrived at by different means. Investors typically determine if ProShares Hedge is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ProShares Hedge'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.