Palladium Commodity Performance
| PAUSD Commodity | 963.00 14.20 1.45% |
The commodity holds a Beta of -0.24, which implies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Palladium are expected to decrease at a much lower rate. During the bear market, Palladium is likely to outperform the market.
Risk-Adjusted Performance
Modest
Weak | Strong |
Compared to the overall equity markets, risk-adjusted returns on investments in Palladium are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Palladium may actually be approaching a critical reversion point that can send shares even higher in April 2025. ...more
Palladium |
Palladium Relative Risk vs. Return Landscape
If you would invest 90,720 in Palladium on December 19, 2024 and sell it today you would earn a total of 6,680 from holding Palladium or generate 7.36% return on investment over 90 days. Palladium is currently producing 0.1324% returns and takes up 2.0927% volatility of returns over 90 trading days. Put another way, 18% of traded commoditys are less volatile than Palladium, and 98% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
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Palladium Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Palladium's investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Palladium, and traders can use it to determine the average amount a Palladium'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 = 0.0633
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| Cash | Small Risk | PAUSD | High Risk | Huge Risk |
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Estimated Market Risk
| 2.09 actual daily | 18 82% of assets are more volatile |
Expected Return
| 0.13 actual daily | 2 98% of assets have higher returns |
Risk-Adjusted Return
| 0.06 actual daily | 4 96% of assets perform better |
Based on monthly moving average Palladium is performing at about 4% 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 Palladium by adding it to a well-diversified portfolio.