Polar Capital (UK) Volatility
| 0P0000XSLC | 352.97 2.49 0.70% |
At this stage we consider Polar Fund to be very steady. Polar Capital Funds maintains Sharpe Ratio (i.e., Efficiency) of 0.1, which implies the entity had a 0.1% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Polar Capital Funds, which you can use to evaluate the volatility of the fund. Please check Polar Capital's Semi Deviation of 0.6242, risk adjusted performance of 0.0808, and Coefficient Of Variation of 983.38 to confirm if the risk estimate we provide is consistent with the expected return of 0.0838%. Key indicators related to Polar Capital's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Polar Capital 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 Polar daily returns, and it is calculated using variance and standard deviation. We also use Polar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Polar Capital volatility.
Polar |
Downward market volatility can be a perfect environment for investors who play the long game with Polar Capital. They may decide to buy additional shares of Polar Capital at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Polar Fund
| 0.83 | 0P0001PGKH | Sanlam Global Artificial | PairCorr |
| 0.64 | TPV | Triple Point Venture | PairCorr |
| 0.67 | 0P0001O04K | Nomura Funds Ireland | PairCorr |
Moving against Polar Fund
| 0.75 | MVCT | Molten Ventures VCT | PairCorr |
| 0.65 | GOT | Global Opportunities | PairCorr |
| 0.42 | 0P0001O7DO | iShares Continen Eurp | PairCorr |
| 0.31 | 0P0001PY0U | Amundi MSCI UK | PairCorr |
Polar Capital Market Sensitivity And Downside Risk
Polar Capital's beta coefficient measures the volatility of Polar 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 Polar fund's returns against your selected market. In other words, Polar Capital's beta of 0.24 provides an investor with an approximation of how much risk Polar Capital fund can potentially add to one of your existing portfolios. Polar Capital Funds exhibits relatively low volatility with skewness of 0.24 and kurtosis of 0.63. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Polar Capital's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Polar Capital's 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 Polar Capital Funds Demand TrendCheck current 90 days Polar Capital correlation with market (Dow Jones Industrial)Polar Beta |
Polar 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 | 0.82 |
It is essential to understand the difference between upside risk (as represented by Polar Capital's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Polar Capital's daily returns or price. Since the actual investment returns on holding a position in polar 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 Polar Capital.
Polar Capital Funds Fund Volatility Analysis
Volatility refers to the frequency at which Polar Capital fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Polar Capital's price changes. Investors will then calculate the volatility of Polar Capital's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A 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 Polar Capital's volatility:
Historical Volatility
This type of fund volatility measures Polar Capital's fluctuations based on previous trends. It's commonly used to predict Polar Capital's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Polar Capital'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 Polar Capital'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. Polar Capital Funds 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.
Polar Capital Projected Return Density Against Market
Assuming the 90 days trading horizon Polar Capital has a beta of 0.2411 . This suggests as returns on the market go up, Polar Capital average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Polar Capital Funds will be expected to be much smaller as well.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 Polar Capital or Oil, Gas & Consumable Fuels 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 Polar Capital's price will be affected by overall 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 Polar 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.
Polar Capital Funds has an alpha of 0.0672, implying that it can generate a 0.0672 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Polar Capital 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.Polar Capital Fund Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Polar Capital is 975.97. The daily returns are distributed with a variance of 0.67 and standard deviation of 0.82. The mean deviation of Polar Capital Funds is currently at 0.6. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.07 | |
β | Beta against Dow Jones | 0.24 | |
σ | Overall volatility | 0.82 | |
Ir | Information ratio | 0.06 |
Polar Capital Fund Return Volatility
Polar Capital historical daily return volatility represents how much of Polar Capital fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund accepts 0.8183% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8045% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Polar Capital Volatility
Volatility is a rate at which the price of Polar Capital 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 Polar Capital may increase or decrease. In other words, similar to Polar's beta indicator, it measures the risk of Polar Capital and helps estimate the fluctuations that may happen in a short period of time. So if prices of Polar Capital 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.3 ways to utilize Polar Capital's volatility to invest better
Higher Polar Capital's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Polar Capital Funds 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. Polar Capital Funds 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 Polar Capital Funds investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Polar Capital'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 Polar Capital's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Polar Capital Investment Opportunity
Polar Capital Funds has a volatility of 0.82 and is 1.02 times more volatile than Dow Jones Industrial. 7 percent of all equities and portfolios are less risky than Polar Capital. You can use Polar Capital Funds to protect your portfolios against small market fluctuations. The fund experiences a moderate downward daily trend and can be a good diversifier. Check odds of Polar Capital to be traded at 345.91 in 90 days.Modest diversification
The correlation between Polar Capital Funds and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Funds and DJI in the same portfolio, assuming nothing else is changed.
Polar Capital Additional Risk Indicators
The analysis of Polar Capital'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 Polar Capital's investment and either accepting that risk or mitigating it. Along with some common measures of Polar Capital 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 | 0.0808 | |||
| Market Risk Adjusted Performance | 0.311 | |||
| Mean Deviation | 0.5953 | |||
| Semi Deviation | 0.6242 | |||
| Downside Deviation | 0.7808 | |||
| Coefficient Of Variation | 983.38 | |||
| Standard Deviation | 0.8121 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Polar Capital 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 Polar Capital 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. Polar Capital'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, Polar Capital'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 Polar Capital Funds.
Other Information on Investing in Polar Fund
Polar Capital financial ratios help investors to determine whether Polar 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 Polar with respect to the benefits of owning Polar Capital security.
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