The Sector Rotation Fund Volatility
| NAVFX Fund | USD 14.82 0.01 0.07% |
We consider Sector Rotation very steady. Sector Rotation owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0599, which indicates the fund had a 0.0599% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for The Sector Rotation, which you can use to evaluate the volatility of the fund. Please validate Sector Rotation's Coefficient Of Variation of 969.42, risk adjusted performance of 0.0662, and Semi Deviation of 0.6788 to confirm if the risk estimate we provide is consistent with the expected return of 0.0477%. Key indicators related to Sector Rotation's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Sector Rotation 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 Sector daily returns, and it is calculated using variance and standard deviation. We also use Sector's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sector Rotation volatility.
Sector |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sector Rotation 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 Sector Rotation at lower prices. For example, an investor can purchase Sector 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 Sector Rotation'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 Sector Mutual Fund
| 0.87 | RAMSX | Roumell Opportunistic | PairCorr |
| 0.98 | FAFGX | American Funds | PairCorr |
| 0.98 | FFAFX | American Funds | PairCorr |
| 0.98 | GFACX | Growth Fund | PairCorr |
| 0.98 | GFAFX | Growth Fund | PairCorr |
| 0.98 | AGTHX | Growth Fund | PairCorr |
| 0.98 | CGFFX | Growth Fund | PairCorr |
| 0.98 | CGFCX | Growth Fund | PairCorr |
Sector Rotation Market Sensitivity And Downside Risk
Sector Rotation's beta coefficient measures the volatility of Sector 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 Sector mutual fund's returns against your selected market. In other words, Sector Rotation's beta of 1.12 provides an investor with an approximation of how much risk Sector Rotation mutual fund can potentially add to one of your existing portfolios. The Sector Rotation exhibits relatively low volatility with skewness of -0.19 and kurtosis of -0.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sector Rotation'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 Sector Rotation'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 Sector Rotation Demand TrendCheck current 90 days Sector Rotation correlation with market (NYSE Composite)Sector Beta |
Sector 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 | 0.8 |
It is essential to understand the difference between upside risk (as represented by Sector Rotation's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sector Rotation's daily returns or price. Since the actual investment returns on holding a position in sector 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 Sector Rotation.
Sector Rotation Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Sector Rotation fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sector Rotation's price changes. Investors will then calculate the volatility of Sector Rotation'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 Sector Rotation's volatility:
Historical Volatility
This type of fund volatility measures Sector Rotation's fluctuations based on previous trends. It's commonly used to predict Sector Rotation'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 Sector Rotation'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 Sector Rotation'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. Sector Rotation 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.
Sector Rotation Projected Return Density Against Market
Assuming the 90 days horizon the mutual fund has the beta coefficient of 1.1195 . This indicates The Sector Rotation market returns are sensitive to returns on the market. As the market goes up or down, Sector Rotation is expected to follow.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 Sector Rotation or Nottingham 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 Sector Rotation'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 Sector 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.
The Sector Rotation has an alpha of 0.0086, implying that it can generate a 0.0086 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sector Rotation 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.Sector Rotation Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Sector Rotation is 1668.31. The daily returns are distributed with a variance of 0.63 and standard deviation of 0.8. The mean deviation of The Sector Rotation is currently at 0.62. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.01 | |
β | Beta against NYSE Composite | 1.12 | |
σ | Overall volatility | 0.80 | |
Ir | Information ratio | 0.02 |
Sector Rotation Mutual Fund Return Volatility
Sector Rotation historical daily return volatility represents how much of Sector Rotation fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.795% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sector Rotation Volatility
Volatility is a rate at which the price of Sector Rotation 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 Sector Rotation may increase or decrease. In other words, similar to Sector's beta indicator, it measures the risk of Sector Rotation and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sector Rotation 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.Under normal circumstances, the fund invests in shares of exchange-traded funds . An ETF is an open-end investment company that holds a portfolio of investments designed to track a particular market segment or underlying index. In seeking to achieve the funds investment objectives, the Advisor may allocate fund assets among equity ETFs representing various domestic and foreign markets, regions and countries. The fund may invest in ETFs that hold foreign securities and American Depositary Receipts but will not invest in emerging market securities to a significant extent.
Sector Rotation'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 Sector Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sector Rotation's price varies over time.
3 ways to utilize Sector Rotation's volatility to invest better
Higher Sector Rotation's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sector Rotation 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. Sector Rotation 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 Sector Rotation investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sector Rotation'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 Sector Rotation's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sector Rotation Investment Opportunity
The Sector Rotation has a volatility of 0.8 and is 1.29 times more volatile than NYSE Composite. 7 percent of all equities and portfolios are less risky than Sector Rotation. You can use The Sector Rotation to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Sector Rotation to be traded at $14.67 in 90 days.Very poor diversification
The correlation between The Sector Rotation and NYA is 0.85 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Sector Rotation and NYA in the same portfolio, assuming nothing else is changed.
Sector Rotation Additional Risk Indicators
The analysis of Sector Rotation'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 Sector Rotation's investment and either accepting that risk or mitigating it. Along with some common measures of Sector Rotation 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.
| Risk Adjusted Performance | 0.0662 | |||
| Market Risk Adjusted Performance | 0.0762 | |||
| Mean Deviation | 0.6503 | |||
| Semi Deviation | 0.6788 | |||
| Downside Deviation | 0.799 | |||
| Coefficient Of Variation | 969.42 | |||
| Standard Deviation | 0.8158 |
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.
Sector Rotation 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 Sector Rotation 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. Sector Rotation'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, Sector Rotation'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 The Sector Rotation.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in The Sector Rotation. 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 census. Note that the Sector Rotation information on this page should be used as a complementary analysis to other Sector Rotation'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.