# Small Capitalization Portfolio Fund Volatility

SSCYX Fund | USD 6.26 0.01 0.16% |

Small Capitalization owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0527, which indicates the fund had a -0.0527% return per unit of risk over the last 3 months. Small Capitalization Portfolio exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Small Capitalization's Variance of 0.9931, risk adjusted performance of (0.01), and Coefficient Of Variation of (4,174) to confirm the risk estimate we provide.

**Key indicators related to Small Capitalization's volatility include:**60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |

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

Small |

Downward market volatility can be a perfect environment for investors who play the long game with Small Capitalization. They may decide to buy additional shares of Small Capitalization at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.

## Moving together with Small Mutual Fund

0.84 | SABAX | Salient Alternative Beta | PairCorr |

0.83 | SABIX | Aggressive Balanced | PairCorr |

0.85 | SABCX | Salient Alternative Beta | PairCorr |

0.82 | SAMAX | Moderately Aggressive | PairCorr |

0.84 | SAMCX | Salient Mlp Fund | PairCorr |

0.82 | SAMIX | Moderately Aggressive | PairCorr |

0.99 | SSCCX | Small Capitalization | PairCorr |

1.0 | SSCPX | Small Capitalization | PairCorr |

## Small Capitalization Market Sensitivity And Downside Risk

Small Capitalization's beta coefficient measures the volatility of Small 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 Small mutual fund's returns against your selected market. In other words, Small Capitalization's beta of 1.31 provides an investor with an approximation of how much risk Small Capitalization mutual fund can potentially add to one of your existing portfolios. Small Capitalization Portfolio exhibits very low volatility with skewness of -0.03 and kurtosis of -0.59. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Small Capitalization'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 Small Capitalization'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 Small Capitalization Demand TrendCheck current 90 days Small Capitalization correlation with market (NYSE Composite)## Small Beta |

Small 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 | 0.97 |

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

## Small Capitalization Mutual Fund Volatility Analysis

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

### Historical Volatility

This type of fund volatility measures Small Capitalization's fluctuations based on previous trends. It's commonly used to predict Small Capitalization'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 Small Capitalization'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 Small Capitalization'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. Small Capitalization 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.

## Small Capitalization Projected Return Density Against Market

Assuming the 90 days horizon the mutual fund has the beta coefficient of 1.3099 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Small Capitalization 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 Small Capitalization or Saratoga 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 Small Capitalization'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 Small 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.

Small Capitalization Portfolio has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |

Returns |

## What Drives a Small Capitalization 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.## Small Capitalization Mutual Fund Risk Measures

Assuming the 90 days horizon the coefficient of variation of Small Capitalization is -1895.8. The daily returns are distributed with a variance of 0.94 and standard deviation of 0.97. The mean deviation of Small Capitalization Portfolio is currently at 0.78. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62

α | Alpha over NYSE Composite | -0.04 | |

β | Beta against NYSE Composite | 1.31 | |

σ | Overall volatility | 0.97 | |

Ir | Information ratio | -0.04 |

## Small Capitalization Mutual Fund Return Volatility

Small Capitalization historical daily return volatility represents how much of Small Capitalization fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.9684% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6231% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About Small Capitalization Volatility

Volatility is a rate at which the price of Small Capitalization 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 Small Capitalization may increase or decrease. In other words, similar to Small's beta indicator, it measures the risk of Small Capitalization and helps estimate the fluctuations that may happen in a short period of time. So if prices of Small Capitalization 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 will normally invest at least 80 percent of its total assets in common stocks of companies whose stock market capitalizations fall within the range of capitalizations in the Russell 2000 Index. The Russell 2000 Index is reconstituted annually at the midpoint of the calendar year. Under adverse market conditions, the fund may also make temporary investments in investment grade debt securities.

Small Capitalization'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 Small Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Small Capitalization's price varies over time.

## 3 ways to utilize Small Capitalization's volatility to invest better

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

## Small Capitalization Investment Opportunity

Small Capitalization Portfolio has a volatility of 0.97 and is 1.56 times more volatile than NYSE Composite.**8 percent**of all equities and portfolios are less risky than Small Capitalization. You can use Small Capitalization Portfolio to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Small Capitalization to be traded at $6.2 in 90 days.

### Very poor diversification

The correlation between Small Capitalization Portfolio and NYA is

**0.82**(i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Small Capitalization Portfolio and NYA in the same portfolio, assuming nothing else is changed.## Small Capitalization Additional Risk Indicators

The analysis of Small Capitalization'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 Small Capitalization's investment and either accepting that risk or mitigating it. Along with some common measures of Small Capitalization 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 | (0.01) | |||

Market Risk Adjusted Performance | (0.02) | |||

Mean Deviation | 0.8133 | |||

Coefficient Of Variation | (4,174) | |||

Standard Deviation | 0.9965 | |||

Variance | 0.9931 | |||

Information Ratio | (0.04) |

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.

## Small Capitalization 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 Small Capitalization 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. Small Capitalization'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, Small Capitalization'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 Small Capitalization Portfolio.

## Other Information on Investing in Small Mutual Fund

Small Capitalization financial ratios help investors to determine whether Small Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Small with respect to the benefits of owning Small Capitalization security.

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