Plumb Mutual Fund Volatility

PLBEX -  USA Fund  

USD 40.20  0.15  0.37%

We consider Plumb Equity very steady. Plumb Equity maintains Sharpe Ratio (i.e., Efficiency) of 0.12, which implies the entity had 0.12% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a fund is to use all available market data together with fund-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Plumb Equity, which you can use to evaluate the future volatility of the fund. Please check Plumb Equity Coefficient Of Variation of 713.15, semi deviation of 0.537, and Risk Adjusted Performance of 0.0984 to confirm if the risk estimate we provide is consistent with the expected return of 0.0981%.

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

30 Days Market Risk

Very steady

Chance of Distress

Very Small

30 Days Economic Sensitivity

Barely shadows the market

Plumb Equity Market Sensitivity And Downside Risk

Plumb Equity's beta coefficient measures the volatility of Plumb mutual fund 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 Plumb mutual fund's returns against your selected market. In other words, Plumb Equity's beta of 0.17 provides an investor with an approximation of how much risk Plumb Equity mutual fund can potentially add to one of your existing portfolios.
Let's try to break down what Plumb's beta means in this case. As returns on the market increase, Plumb Equity returns are expected to increase less than the market. However, during the bear market, the loss on holding Plumb Equity will be expected to be smaller as well.
3 Months Beta |Analyze Plumb Equity Demand Trend
Check current 90 days Plumb Equity correlation with market (DOW)

Plumb Beta

    
  0.17  
Plumb 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

    
  0.81  
It is essential to understand the difference between upside risk (as represented by Plumb Equity's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Plumb Equity stock's daily returns or price. Since the actual investment returns on holding a position in Plumb Equity 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 Plumb Equity.

Plumb Equity Mutual Fund Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Plumb Equity 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.

Plumb Equity Projected Return Density Against Market

Assuming the 90 days horizon Plumb Equity has a beta of 0.1711 indicating as returns on the market go up, Plumb Equity average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Plumb Equity 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 Plumb Equity or Plumb Funds 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 Plumb Equity 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 Plumb 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 0.1023, implying that it can generate a 0.1 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Plumb Equity Mutual Fund 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 Plumb Equity or Plumb Funds 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 Plumb Equity 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 Plumb 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.
Assuming the 90 days horizon the coefficient of variation of Plumb Equity is 825.24. The daily returns are distributed with a variance of 0.66 and standard deviation of 0.81. The mean deviation of Plumb Equity is currently at 0.64. For similar time horizon, the selected benchmark (DOW) has volatility of 0.69
α
Alpha over DOW
0.10
β
Beta against DOW0.17
σ
Overall volatility
0.81
Ir
Information ratio 0.11

Plumb Equity Mutual Fund Return Volatility

Plumb Equity historical daily return volatility represents how much Plumb Equity stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The fund shows 0.8096% volatility of returns over 90 . By contrast, DOW inherits 0.6347% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Plumb Equity Volatility

Volatility is a rate at which the price of Plumb Equity 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 Plumb Equity may increase or decrease. In other words, similar to Plumb's beta indicator, it measures the risk of Plumb Equity and helps estimate the fluctuations that may happen in a short period of time. So if prices of Plumb Equity 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 normally invests at least 80 percent of its assets, including borrowings for investment purposes, in common stocks and other equity securities, such as exchange-traded funds , options, preferred stocks and securities convertible into such equity securities. Plumb Equity is traded on NASDAQ Exchange in the United States.

Plumb Equity Investment Opportunity

Plumb Equity has a volatility of 0.81 and is 1.29 times more volatile than DOW. of all equities and portfolios are less risky than Plumb Equity. Compared to the overall equity markets, volatility of historical daily returns of Plumb Equity is lower than 6 () of all global equities and portfolios over the last 90 days. Use Plumb Equity to enhance returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of Plumb Equity to be traded at $42.21 in 90 days. . Let's try to break down what Plumb's beta means in this case. As returns on the market increase, Plumb Equity returns are expected to increase less than the market. However, during the bear market, the loss on holding Plumb Equity will be expected to be smaller as well.

Average diversification

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

Plumb Equity Additional Risk Indicators

The analysis of Plumb Equity'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 Plumb Equity's investment and either accepting that risk or mitigating it. Along with some common measures of Plumb Equity 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 Performance0.0984
Market Risk Adjusted Performance0.6248
Mean Deviation0.662
Semi Deviation0.537
Downside Deviation0.687
Coefficient Of Variation713.15
Standard Deviation0.8215
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.

Plumb Equity 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 Plumb Equity 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. Plumb Equity'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, Plumb Equity'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 Plumb Equity.
Please check Your Equity Center. Note that the Plumb Equity information on this page should be used as a complementary analysis to other Plumb Equity'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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Complementary Tools for Plumb Mutual Fund analysis

When running Plumb Equity price analysis, check to measure Plumb Equity'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 Plumb Equity is operating at the current time. Most of Plumb Equity's value examination focuses on studying past and present price action to predict the probability of Plumb Equity's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Plumb Equity's price. Additionally, you may evaluate how the addition of Plumb Equity to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Plumb Equity's value and its price as these two are different measures arrived at by different means. Investors typically determine Plumb Equity value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Plumb Equity'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.