IBEX 35 (Spain) Volatility
| IBEX Index | 11,028 47.60 0.43% |
IBEX 35 Index holds Efficiency (Sharpe) Ratio of 0.22, which attests that the index had a 0.22% return per unit of return volatility over the last 3 months. We have found twenty-six technical indicators for IBEX 35 Index, which you can use to evaluate the volatility of the entity.
IBEX 35 Index 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 IBEX daily returns, and it is calculated using variance and standard deviation. We also use IBEX's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of IBEX 35 volatility.
IBEX 35 Index Index Volatility Analysis
Volatility refers to the frequency at which IBEX 35 index price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with IBEX 35's price changes. Investors will then calculate the volatility of IBEX 35's index to predict their future moves. A index that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A index with relatively stable price changes has low volatility. A highly volatile index 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 IBEX 35's volatility:
Historical Volatility
This type of index volatility measures IBEX 35's fluctuations based on previous trends. It's commonly used to predict IBEX 35's future behavior based on its past. However, it cannot conclusively determine the future direction of the index.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for IBEX 35's current market price. This means that the index will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on IBEX 35'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. IBEX 35 Index 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.
IBEX 35 Projected Return Density Against Market
Predicted Return Density |
| Returns |
What Drives an IBEX 35 Price Volatility?
Several factors can influence a index'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.IBEX 35 Investment Opportunity
IBEX 35 Index has a volatility of 0.77 and is 1.2 times more volatile than NYSE Composite. 6 percent of all equities and portfolios are less risky than IBEX 35. You can use IBEX 35 Index to protect your portfolios against small market fluctuations. The index experiences a normal downward trend and little activity. Check odds of IBEX 35 to be traded at 10917.52 in 90 days.IBEX 35 Additional Risk Indicators
The analysis of IBEX 35'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 IBEX 35's investment and either accepting that risk or mitigating it. Along with some common measures of IBEX 35 index'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 | 0.1324 | |||
| Mean Deviation | 0.6266 | |||
| Semi Deviation | 0.5389 | |||
| Downside Deviation | 0.7652 | |||
| Coefficient Of Variation | 478.23 | |||
| Standard Deviation | 0.7781 | |||
| Variance | 0.6055 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential indexs, we recommend comparing similar indexs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
IBEX 35 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 IBEX 35 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. IBEX 35'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, IBEX 35'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 IBEX 35 Index.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any index could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.