Ellington Income Opportunities Fund Volatility
| EIOMX Fund | USD 8.69 0.02 0.23% |
At this stage we consider Ellington Mutual Fund to be very steady. Ellington Income Opp secures Sharpe Ratio (or Efficiency) of 0.36, which denotes the fund had a 0.36 % return per unit of risk over the last 3 months. We have found twenty-six technical indicators for Ellington Income Opportunities, which you can use to evaluate the volatility of the entity. Please confirm Ellington Income's Coefficient Of Variation of 311.31, mean deviation of 0.083, and Standard Deviation of 0.11 to check if the risk estimate we provide is consistent with the expected return of 0.0349%.
Ellington |
Ellington Income Mutual 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 Ellington daily returns, and it is calculated using variance and standard deviation. We also use Ellington's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ellington Income volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Ellington Income. They may decide to buy additional shares of Ellington Income at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against Ellington Mutual Fund
| 0.82 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.78 | DD | Dupont De Nemours Fiscal Year End 4th of February 2025 | PairCorr |
| 0.76 | VGTSX | Vanguard Total Inter | PairCorr |
| 0.75 | VTIAX | Vanguard Total Inter | PairCorr |
| 0.75 | NHS | Neuberger Berman High | PairCorr |
| 0.74 | PFHCX | Pacific Funds Small | PairCorr |
| 0.74 | XOM | Exxon Mobil Corp Aggressive Push | PairCorr |
| 0.72 | HPQ | HP Inc | PairCorr |
| 0.65 | PFE | Pfizer Inc Earnings Call This Week | PairCorr |
Ellington Income Market Sensitivity And Downside Risk
Ellington Income's beta coefficient measures the volatility of Ellington mutual 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 Ellington mutual fund's returns against your selected market. In other words, Ellington Income's beta of 0.0129 provides an investor with an approximation of how much risk Ellington Income mutual fund can potentially add to one of your existing portfolios. Ellington Income Opportunities exhibits very low volatility with skewness of -1.1 and kurtosis of 3.14. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ellington Income's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ellington Income's mutual 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 Ellington Income Opp Demand TrendCheck current 90 days Ellington Income correlation with market (Dow Jones Industrial)Ellington Beta |
Ellington 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 | 0.0962 |
It is essential to understand the difference between upside risk (as represented by Ellington Income's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ellington Income's daily returns or price. Since the actual investment returns on holding a position in ellington mutual 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 Ellington Income.
Ellington Income Opp Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Ellington Income fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ellington Income's price changes. Investors will then calculate the volatility of Ellington Income's mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual 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 Ellington Income's volatility:
Historical Volatility
This type of fund volatility measures Ellington Income's fluctuations based on previous trends. It's commonly used to predict Ellington Income's future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Ellington Income'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 Ellington Income'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. Ellington Income Opp 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.
Ellington Income Projected Return Density Against Market
Assuming the 90 days horizon Ellington Income has a beta of 0.0129 suggesting as returns on the market go up, Ellington Income average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Ellington Income Opportunities 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 Ellington Income or Ellington 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 Ellington Income's price will be affected by overall mutual 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 Ellington 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.
Ellington Income Opportunities has an alpha of 0.0251, implying that it can generate a 0.0251 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Ellington Income 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.Ellington Income Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Ellington Income is 275.45. The daily returns are distributed with a variance of 0.01 and standard deviation of 0.1. The mean deviation of Ellington Income Opportunities is currently at 0.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 0.1 | |
Ir | Information ratio | 0.05 |
Ellington Income Mutual Fund Return Volatility
Ellington Income historical daily return volatility represents how much of Ellington Income fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.0962% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8471% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ellington Income Volatility
Volatility is a rate at which the price of Ellington Income 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 Ellington Income may increase or decrease. In other words, similar to Ellington's beta indicator, it measures the risk of Ellington Income and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ellington Income 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 Ellington Income's volatility to invest better
Higher Ellington Income's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ellington Income Opp 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. Ellington Income Opp 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 Ellington Income Opp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ellington Income'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 Ellington Income's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ellington Income Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.85 and is 8.5 times more volatile than Ellington Income Opportunities. 0 percent of all equities and portfolios are less risky than Ellington Income. You can use Ellington Income Opportunities to enhance the returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of Ellington Income to be traded at $9.12 in 90 days.Average diversification
The correlation between Ellington Income Opportunities and DJI is 0.1 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ellington Income Opportunities and DJI in the same portfolio, assuming nothing else is changed.
Ellington Income Additional Risk Indicators
The analysis of Ellington Income'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 Ellington Income's investment and either accepting that risk or mitigating it. Along with some common measures of Ellington Income mutual 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 | 0.2025 | |||
| Market Risk Adjusted Performance | 1.97 | |||
| Mean Deviation | 0.083 | |||
| Downside Deviation | 0.2157 | |||
| Coefficient Of Variation | 311.31 | |||
| Standard Deviation | 0.11 | |||
| Variance | 0.0121 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Ellington Income 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 Ellington Income 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. Ellington Income'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, Ellington Income'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 Ellington Income Opportunities.
Other Information on Investing in Ellington Mutual Fund
Ellington Income financial ratios help investors to determine whether Ellington Mutual 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 Ellington with respect to the benefits of owning Ellington Income security.
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