Nifty Etf Volatility

INDF -  USA Etf  

USD 38.55  0.19  0.49%

We consider Nifty India very steady. Nifty India Financials has Sharpe Ratio of 0.22, which conveys that the entity had 0.22% of return per unit of risk over the last 3 months. Our standpoint towards estimating 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-eight technical indicators for Nifty India, which you can use to evaluate the future volatility of the etf. Please verify Nifty India Financials Risk Adjusted Performance of 0.1588, downside deviation of 0.8025, and Mean Deviation of 0.6439 to check out if the risk estimate we provide is consistent with the expected return of 0.19%.

Nifty Volatility 

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

30 Days Market Risk

Very steady

Chance of Distress

Below Average

30 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Nifty India 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 Nifty India at lower prices. For example, an investor can purchase Nifty 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 Nifty India'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.

Nifty India Market Sensitivity And Downside Risk

Nifty India's beta coefficient measures the volatility of Nifty 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 Nifty etf's returns against your selected market. In other words, Nifty India's beta of 0.67 provides an investor with an approximation of how much risk Nifty India etf can potentially add to one of your existing portfolios.
Let's try to break down what Nifty's beta means in this case. As returns on the market increase, Nifty India returns are expected to increase less than the market. However, during the bear market, the loss on holding Nifty India will be expected to be smaller as well.
3 Months Beta |Analyze Nifty India Financials Demand Trend
Check current 90 days Nifty India correlation with market (DOW)

Nifty Beta

    
  0.67  
Nifty 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

    
  0.85  
It is essential to understand the difference between upside risk (as represented by Nifty India's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Nifty India stock's daily returns or price. Since the actual investment returns on holding a position in Nifty India stock 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 Nifty India.

Nifty India Financials Etf Volatility Analysis

Volatility refers to the frequency at which Nifty India stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Nifty India's price changes. Investors will then calculate the volatility of Nifty India's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Nifty India's volatility:

Historical Volatility

This type of stock volatility measures Nifty India's fluctuations based on previous trends. It's commonly used to predict Nifty India's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Nifty India's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Nifty India Financials 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. View also all equity analysis or get more info about average price price transform indicator.

Nifty India Projected Return Density Against Market

Given the investment horizon of 90 days Nifty India has a beta of 0.6694 . This usually indicates as returns on the market go up, Nifty India average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Nifty India Financials 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 Nifty India or Exchange Traded Concepts 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 Nifty India stock's price will be affected by overall stock 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 Nifty stock'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 an alpha of 0.167, implying that it can generate a 0.17 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Nifty India's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Nifty India stock'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 Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

Nifty India 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 Nifty India or Exchange Traded Concepts 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 Nifty India stock's price will be affected by overall stock 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 Nifty stock'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.
Given the investment horizon of 90 days the coefficient of variation of Nifty India is 449.42. The daily returns are distributed with a variance of 0.73 and standard deviation of 0.85. The mean deviation of Nifty India Financials is currently at 0.65. For similar time horizon, the selected benchmark (DOW) has volatility of 0.7
α
Alpha over DOW
0.17
β
Beta against DOW0.67
σ
Overall volatility
0.85
Ir
Information ratio 0.19

Nifty India Etf Return Volatility

Nifty India historical daily return volatility represents how much Nifty India stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The fund inherits 0.8519% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7156% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Nifty India Volatility

Volatility is a rate at which the price of Nifty India 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 Nifty India may increase or decrease. In other words, similar to Nifty's beta indicator, it measures the risk of Nifty India and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nifty India 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 investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nifty Financial Services 2550 Index . Nifty India is traded on NYSEArca Exchange in the United States.

Nifty India Investment Opportunity

Nifty India Financials has a volatility of 0.85 and is 1.18 times more volatile than DOW. of all equities and portfolios are less risky than Nifty India. Compared to the overall equity markets, volatility of historical daily returns of Nifty India Financials is lower than 7 () of all global equities and portfolios over the last 90 days. Use Nifty India Financials to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend and little activity. Check odds of Nifty India to be traded at $38.16 in 90 days. . Let's try to break down what Nifty's beta means in this case. As returns on the market increase, Nifty India returns are expected to increase less than the market. However, during the bear market, the loss on holding Nifty India will be expected to be smaller as well.

Very weak diversification

The correlation between Nifty India Financials and DJI is Very weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nifty India Financials and DJI in the same portfolio assuming nothing else is changed.

Nifty India Additional Risk Indicators

The analysis of Nifty India'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 Nifty India's investment and either accepting that risk or mitigating it. Along with some common measures of Nifty India stock 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 Performance0.1588
Market Risk Adjusted Performance0.2781
Mean Deviation0.6439
Semi Deviation0.5916
Downside Deviation0.8025
Coefficient Of Variation447.05
Standard Deviation0.847
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Nifty India 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.
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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 Nifty India 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. Nifty India'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, Nifty India'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 Nifty India Financials.
Please see Risk vs Return Analysis. Note that the Nifty India Financials information on this page should be used as a complementary analysis to other Nifty India'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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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The market value of Nifty India Financials is measured differently than its book value, which is the value of Nifty that is recorded on the company's balance sheet. Investors also form their own opinion of Nifty India's value that differs from its market value or its book value, called intrinsic value, which is Nifty India'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 Nifty India's market value can be influenced by many factors that don't directly affect Nifty India'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 Nifty India's value and its price as these two are different measures arrived at by different means. Investors typically determine Nifty India value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nifty India'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.