Nyse Composite Index Volatility
| NYA Index | 15,963 33.84 0.21% |
NYSE Composite has Sharpe Ratio of -0.001, which conveys that the entity had -0.001% of return per unit of standard deviation over the last 3 months. Our standpoint towards estimating the risk of any index is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. NYSE Composite exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Key technical indicators related to NYSE Composite's volatility include:
NYSE Composite 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 NYSE daily returns, and it is calculated using variance and standard deviation. We also use NYSE's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of NYSE Composite volatility.
NYSE Composite Index Volatility Analysis
Volatility refers to the frequency at which NYSE Composite index price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with NYSE Composite's price changes. Investors will then calculate the volatility of NYSE Composite'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 NYSE Composite's volatility:
Historical Volatility
This type of index volatility measures NYSE Composite's fluctuations based on previous trends. It's commonly used to predict NYSE Composite'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 NYSE Composite'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 NYSE Composite'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. NYSE Composite 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..
NYSE Composite Projected Return Density Against Market
Predicted Return Density |
| Returns |
What Drives a NYSE Composite 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.NYSE Composite Investment Opportunity
NYSE Composite has the same returns volatility as NYSE Composite considering given time horizon. 6 of all equities and portfolios are less risky than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of NYSE Composite is lower than 6 () of all global equities and portfolios over the last 90 days. Use NYSE Composite to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The index experiences a normal upward fluctuation. Check odds of NYSE Composite to be traded at 16761.14 in 90 days.NYSE Composite Additional Risk Indicators
The analysis of NYSE Composite'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 NYSE Composite's investment and either accepting that risk or mitigating it. Along with some common measures of NYSE Composite 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 | 0.0185 | |||
| Mean Deviation | 0.5985 | |||
| Semi Deviation | 0.7231 | |||
| Downside Deviation | 0.7595 | |||
| Coefficient Of Variation | 4196.81 | |||
| Standard Deviation | 0.775 | |||
| Variance | 0.6005 |
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.
NYSE Composite 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 NYSE Composite 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. NYSE Composite'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, NYSE Composite'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 NYSE Composite.
Check out Correlation 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 gross domestic product. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Complementary Tools for NYSE Index analysis
When running NYSE Composite's price analysis, check to measure NYSE Composite'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 NYSE Composite is operating at the current time. Most of NYSE Composite's value examination focuses on studying past and present price action to predict the probability of NYSE Composite's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NYSE Composite's price. Additionally, you may evaluate how the addition of NYSE Composite to your portfolios can decrease your overall portfolio volatility.
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