Invesco Etf Volatility

KBWB Etf  USD 58.83  0.12  0.20%   
We consider Invesco KBW very steady. Invesco KBW Bank holds Efficiency (Sharpe) Ratio of 0.11, which attests that the entity had 0.11% of return per unit of risk over the last 3 months. Our standpoint towards determining 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-one technical indicators for Invesco KBW Bank, which you can use to evaluate the future volatility of the entity. Please check out Invesco KBW Risk Adjusted Performance of 0.1242, market risk adjusted performance of 0.1377, and Downside Deviation of 1.58 to validate if the risk estimate we provide is consistent with the expected return of 0.17%.
  
Invesco KBW 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 Invesco daily returns, and it is calculated using variance and standard deviation. We also use Invesco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Invesco KBW volatility.

30 Days Market Risk

Very steady

Chance of Distress

Close to Average

30 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Invesco KBW 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 Invesco KBW at lower prices. For example, an investor can purchase Invesco 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 Invesco KBW'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 Invesco KBW

+0.89XLFFinancial Select SectorPairCorr
+0.95VFHVanguard Financials IndexPairCorr
+0.65KRESPDR SP RegionalPairCorr
+0.85KBESPDR SP BankPairCorr
+0.93IYFIShares US FinancialsPairCorr
+0.94FNCLFidelity MSCI FinancialsPairCorr
+0.95IYGIShares US FinancialPairCorr

Invesco KBW Market Sensitivity And Downside Risk

Invesco KBW's beta coefficient measures the volatility of Invesco 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 Invesco etf's returns against your selected market. In other words, Invesco KBW's beta of 1.25 provides an investor with an approximation of how much risk Invesco KBW etf can potentially add to one of your existing portfolios.
Invesco KBW Bank has relatively low volatility with skewness of 0.25 and kurtosis of 2.11. However, we advise all investors to independently investigate Invesco KBW Bank to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Invesco KBW'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 Invesco KBW'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 Invesco KBW Bank Demand Trend
Check current 90 days Invesco KBW correlation with market (NYSE Composite)

Invesco Beta

    
  1.25  
Invesco 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

    
  1.53  
It is essential to understand the difference between upside risk (as represented by Invesco KBW's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Invesco KBW's daily returns or price. Since the actual investment returns on holding a position in invesco 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 Invesco KBW.

Using Invesco Put Option to Manage Risk

Put options written on Invesco KBW grant holders of the option the right to sell a specified amount of Invesco KBW at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Invesco Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Invesco KBW's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Invesco KBW will be realized, the loss incurred will be offset by the profits made with the option trade.

Invesco KBW's PUT expiring on 2023-02-17

   Profit   
       Invesco KBW Price At Expiration  

Current Invesco KBW Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2023-02-17 PUT at $59.0-0.51890.19185002023-02-170.85 - 1.250.9View
Put
2023-02-17 PUT at $58.0-0.35660.1478202023-02-170.45 - 0.80.53View
Put
2023-02-17 PUT at $57.0-0.23330.1137302023-02-170.2 - 0.550.32View
Put
2023-02-17 PUT at $55.0-0.10760.0562912023-02-170.0 - 0.30.12View
Put
2023-02-17 PUT at $54.0-0.08440.040912023-02-170.0 - 0.251.05View
View All Invesco KBW Options

Invesco KBW Bank Etf Volatility Analysis

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

Historical Volatility

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

Given the investment horizon of 90 days the etf has the beta coefficient of 1.2514 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Invesco KBW will likely underperform.
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 Invesco KBW or Invesco 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 Invesco KBW'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 Invesco 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 an alpha of 0.0101, implying that it can generate a 0.0101 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Invesco KBW's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how invesco 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 an Invesco KBW 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.

Invesco KBW 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 Invesco KBW or Invesco 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 Invesco KBW'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 Invesco 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. Given the investment horizon of 90 days the coefficient of variation of Invesco KBW is 908.9. The daily returns are distributed with a variance of 2.35 and standard deviation of 1.53. The mean deviation of Invesco KBW Bank is currently at 1.1. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.11
α
Alpha over NYSE Composite
0.0101
β
Beta against NYSE Composite1.25
σ
Overall volatility
1.53
Ir
Information ratio 0.0259

Invesco KBW Etf Return Volatility

Invesco KBW historical daily return volatility represents how much of Invesco KBW etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 1.5338% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.0913% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About Invesco KBW Volatility

Volatility is a rate at which the price of Invesco KBW 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 Invesco KBW may increase or decrease. In other words, similar to Invesco's beta indicator, it measures the risk of Invesco KBW and helps estimate the fluctuations that may happen in a short period of time. So if prices of Invesco KBW 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 generally will invest at least 90 percent of its total assets in the securities that comprise the underlying index. KBW Bank is traded on NASDAQ Exchange in the United States.
Invesco KBW'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 Invesco Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Invesco KBW's price varies over time.

3 ways to utilize Invesco KBW's volatility to invest better

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

Invesco KBW Investment Opportunity

Invesco KBW Bank has a volatility of 1.53 and is 1.4 times more volatile than NYSE Composite. 13  of all equities and portfolios are less risky than Invesco KBW. Compared to the overall equity markets, volatility of historical daily returns of Invesco KBW Bank is lower than 13 () of all global equities and portfolios over the last 90 days. Use Invesco KBW Bank to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The etf experiences a normal downward trend and little activity. Check odds of Invesco KBW to be traded at $58.24 in 90 days.

Very poor diversification

The correlation between Invesco KBW Bank and NYA is 0.89 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco KBW Bank and NYA in the same portfolio, assuming nothing else is changed.

Invesco KBW Additional Risk Indicators

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

Invesco KBW 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 Invesco KBW 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. Invesco KBW'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, Invesco KBW'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 Invesco KBW Bank.
Please see Correlation Analysis. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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