Cotton Commodity Performance
| CTUSX Commodity | 68.35 0.37 0.54% |
The commodity shows a Beta (market volatility) of -0.0277, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Cotton are expected to decrease at a much lower rate. During the bear market, Cotton is likely to outperform the market.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Cotton has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Cotton is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors. ...more
Cotton |
Cotton Relative Risk vs. Return Landscape
If you would invest 6,925 in Cotton on November 19, 2024 and sell it today you would lose (90.00) from holding Cotton or give up 1.3% of portfolio value over 90 days. Cotton is currently producing negative expected returns and takes up 0.9296% volatility of returns over 90 trading days. Put another way, 8% of traded commoditys are less volatile than Cotton, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Cotton Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cotton's investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Cotton, and traders can use it to determine the average amount a Cotton'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 = -0.0178
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | CTUSX |
Estimated Market Risk
| 0.93 actual daily | 8 92% of assets are more volatile |
Expected Return
| -0.02 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.02 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Cotton 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 Cotton by adding Cotton to a well-diversified portfolio.
| Cotton generated a negative expected return over the last 90 days |