# PRINCIPAL Mutual Fund Volatility

PTDSX Fund | USD 13.60 0.15 1.09% |

We consider PRINCIPAL LIFETIME very steady. PRINCIPAL LIFETIME 2040 maintains Sharpe Ratio (i.e., Efficiency) of 0.0563, which implies the entity had 0.0563% of return per unit of volatility over the last 3 months. Our approach 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 PRINCIPAL LIFETIME 2040, which you can use to evaluate the future volatility of the fund. Please check PRINCIPAL LIFETIME 2040 risk adjusted performance of 0.0346, and Semi Deviation of 0.8228 to confirm if the risk estimate we provide is consistent with the expected return of 0.046%.

PRINCIPAL |

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

### 30 Days Market Risk

### Chance of Distress

### 30 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as PRINCIPAL LIFETIME 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 PRINCIPAL LIFETIME at lower prices. For example, an investor can purchase PRINCIPAL 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 PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME

+ | 0.92 | FFFFX | FIDELITY FREEDOM 2040 | PairCorr | |||

+ | 0.87 | AAGTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.87 | REGTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.88 | RCKTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.85 | RFGTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.88 | RAKTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.93 | FAUTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.87 | RHGTX | AMERICAN FUNDS 2040 | PairCorr | |||

+ | 0.88 | RBKTX | AMERICAN FUNDS 2040 | PairCorr |

## PRINCIPAL LIFETIME Market Sensitivity And Downside Risk

PRINCIPAL LIFETIME's beta coefficient measures the volatility of PRINCIPAL 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 PRINCIPAL mutual fund's returns against your selected market. In other words, PRINCIPAL LIFETIME's beta of -0.15 provides an investor with an approximation of how much risk PRINCIPAL LIFETIME mutual fund can potentially add to one of your existing portfolios.

PRINCIPAL LIFETIME 2040 has low volatility with Treynor Ratio of -0.15, Maximum Drawdown of 4.24 and kurtosis of 0.04. However, we advice all investors to further analyze PRINCIPAL LIFETIME 2040 to make certain all market information is desiminated and is consistent with the current expectations about PRINCIPAL LIFETIME upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME'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 stocks as prices fall. 3 Months Beta |Analyze PRINCIPAL LIFETIME 2040 Demand TrendCheck current 90 days PRINCIPAL LIFETIME correlation with market (NYSE Composite)## PRINCIPAL Beta |

PRINCIPAL 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 | 0.82 |

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

## PRINCIPAL LIFETIME 2040 Mutual Fund Volatility Analysis

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

### Historical Volatility

This type of fund volatility measures PRINCIPAL LIFETIME's fluctuations based on previous trends. It's commonly used to predict PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME'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. PRINCIPAL LIFETIME 2040 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..

## PRINCIPAL LIFETIME Projected Return Density Against Market

Assuming the 90 days horizon PRINCIPAL LIFETIME 2040 has a beta of -0.1494 indicating as returns on benchmark increase, returns on holding PRINCIPAL LIFETIME are expected to decrease at a much lower rate. During the bear market, however, PRINCIPAL LIFETIME 2040 is likely to outperform the market.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 PRINCIPAL LIFETIME or Principal 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 PRINCIPAL LIFETIME'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 PRINCIPAL 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 company has an alpha of 0.023, implying that it can generate a 0.023 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a PRINCIPAL LIFETIME 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.## PRINCIPAL LIFETIME 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 PRINCIPAL LIFETIME or Principal 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 PRINCIPAL LIFETIME'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 PRINCIPAL 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. Assuming the 90 days horizon the coefficient of variation of PRINCIPAL LIFETIME is 1774.97. The daily returns are distributed with a variance of 0.67 and standard deviation of 0.82. The mean deviation of PRINCIPAL LIFETIME 2040 is currently at 0.65. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.95

α | Alpha over NYSE Composite | 0.023 | |

β | Beta against NYSE Composite | -0.15 | |

σ | Overall volatility | 0.82 | |

Ir | Information ratio | 0.0275 |

## PRINCIPAL LIFETIME Mutual Fund Return Volatility

PRINCIPAL LIFETIME historical daily return volatility represents how much of PRINCIPAL LIFETIME fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.817% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.9498% volatility on return distribution over the 90 days horizon. Performance (%) |

Timeline |

## About PRINCIPAL LIFETIME Volatility

Volatility is a rate at which the price of PRINCIPAL LIFETIME 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 PRINCIPAL LIFETIME may increase or decrease. In other words, similar to PRINCIPAL's beta indicator, it measures the risk of PRINCIPAL LIFETIME and helps estimate the fluctuations that may happen in a short period of time. So if prices of PRINCIPAL LIFETIME 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.## 3 ways to utilize PRINCIPAL LIFETIME's volatility to invest better

Higher PRINCIPAL LIFETIME's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of PRINCIPAL LIFETIME 2040 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. PRINCIPAL LIFETIME 2040 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 PRINCIPAL LIFETIME 2040 investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## PRINCIPAL LIFETIME Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.95 and is 1.16 times more volatile than PRINCIPAL LIFETIME 2040.**7**of all equities and portfolios are less risky than PRINCIPAL LIFETIME. Compared to the overall equity markets, volatility of historical daily returns of PRINCIPAL LIFETIME 2040 is lower than

**7 ()**of all global equities and portfolios over the last 90 days. Use PRINCIPAL LIFETIME 2040 to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The mutual fund experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of PRINCIPAL LIFETIME to be traded at $13.19 in 90 days.

### Good diversification

The correlation between PRINCIPAL LIFETIME 2040 and NYA is

**-0.16**(i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PRINCIPAL LIFETIME 2040 and NYA in the same portfolio, assuming nothing else is changed.## PRINCIPAL LIFETIME Additional Risk Indicators

The analysis of PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME's investment and either accepting that risk or mitigating it. Along with some common measures of PRINCIPAL LIFETIME 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 | 0.0346 | |||

Market Risk Adjusted Performance | (0.14) | |||

Mean Deviation | 0.7053 | |||

Semi Deviation | 0.8228 | |||

Downside Deviation | 0.9181 | |||

Coefficient Of Variation | 2688.36 | |||

Standard Deviation | 0.8913 |

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.

## PRINCIPAL LIFETIME 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 PRINCIPAL LIFETIME 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. PRINCIPAL LIFETIME'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, PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME 2040.

Check out Your Equity Center. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running PRINCIPAL LIFETIME 2040 price analysis, check to measure PRINCIPAL LIFETIME'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 PRINCIPAL LIFETIME is operating at the current time. Most of PRINCIPAL LIFETIME's value examination focuses on studying past and present price action to predict the probability of PRINCIPAL LIFETIME's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move PRINCIPAL LIFETIME's price. Additionally, you may evaluate how the addition of PRINCIPAL LIFETIME to your portfolios can decrease your overall portfolio volatility.

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