Brent Crude Oil Commodity Performance
| BZUSD Commodity | 72.81 0.76 1.03% |
The commodity shows a Beta (market volatility) of -0.0231, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Brent Crude are expected to decrease at a much lower rate. During the bear market, Brent Crude is likely to outperform the market.
Risk-Adjusted Performance
Weak
Weak | Strong |
Compared to the overall equity markets, risk-adjusted returns on investments in Brent Crude Oil are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Brent Crude is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders. ...more
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Brent Crude Relative Risk vs. Return Landscape
If you would invest 7,154 in Brent Crude Oil on December 1, 2024 and sell it today you would earn a total of 127.00 from holding Brent Crude Oil or generate 1.78% return on investment over 90 days. Brent Crude Oil is currently producing 0.0358% returns and takes up 1.3032% volatility of returns over 90 trading days. Put another way, 11% of traded commoditys are less volatile than Brent, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
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Brent Crude Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Brent Crude's investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Brent Crude Oil, and traders can use it to determine the average amount a Brent Crude's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = 0.0275
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| Negative Returns | BZUSD |
Estimated Market Risk
| 1.3 actual daily | 11 89% of assets are more volatile |
Expected Return
| 0.04 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| 0.03 actual daily | 2 98% of assets perform better |
Based on monthly moving average Brent Crude is performing at about 2% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Brent Crude by adding it to a well-diversified portfolio.