Brent Crude Oil Commodity Performance
| BZUSD Commodity | 72.00 1.22 1.72% |
The commodity shows a Beta (market volatility) of 0.0898, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Brent Crude's returns are expected to increase less than the market. However, during the bear market, the loss of holding Brent Crude is expected to be smaller as well.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Brent Crude Oil has generated negative risk-adjusted returns adding no value to investors with long positions. 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
Brent |
Brent Crude Relative Risk vs. Return Landscape
If you would invest 7,232 in Brent Crude Oil on December 21, 2024 and sell it today you would lose (32.00) from holding Brent Crude Oil or give up 0.44% of portfolio value over 90 days. Brent Crude Oil is currently producing 0.0019% returns and takes up 1.3485% volatility of returns over 90 trading days. Put another way, 12% 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 |
| Risk |
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 = 0.0014
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | BZUSD |
Estimated Market Risk
| 1.35 actual daily | 12 88% of assets are more volatile |
Expected Return
| 0.0 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| 0.0 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Brent Crude is not performing at its full potential. However, 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 Brent Crude to a well-diversified portfolio.