Strats Sm Trust Stock Volatility
| GJO Stock | USD 24.87 0.13 0.52% |
As of now, Strats Stock is very steady. Strats SM Trust owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0087, which indicates the firm had a 0.0087% return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Strats SM Trust, which you can use to evaluate the volatility of the company. Please validate Strats SM's Variance of 0.3406, risk adjusted performance of (0.01), and Coefficient Of Variation of (11,659) to confirm if the risk estimate we provide is consistent with the expected return of 0.0048%. Key indicators related to Strats SM's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Strats SM Stock 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 Strats daily returns, and it is calculated using variance and standard deviation. We also use Strats's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Strats SM volatility.
Strats |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Strats SM can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Strats SM at lower prices. For example, an investor can purchase Strats stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Strats SM's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Strats SM Market Sensitivity And Downside Risk
Strats SM's beta coefficient measures the volatility of Strats stock 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 Strats stock's returns against your selected market. In other words, Strats SM's beta of -0.0635 provides an investor with an approximation of how much risk Strats SM stock can potentially add to one of your existing portfolios. Strats SM Trust exhibits very low volatility with skewness of -0.56 and kurtosis of 0.56. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Strats SM's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Strats SM's stock 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 Strats SM Trust Demand TrendCheck current 90 days Strats SM correlation with market (Dow Jones Industrial)Strats Beta |
Strats 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 | 0.55 |
It is essential to understand the difference between upside risk (as represented by Strats SM's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Strats SM's daily returns or price. Since the actual investment returns on holding a position in strats stock 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 Strats SM.
Strats SM Trust Stock Volatility Analysis
Volatility refers to the frequency at which Strats SM stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Strats SM's price changes. Investors will then calculate the volatility of Strats SM's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Strats SM's volatility:
Historical Volatility
This type of stock volatility measures Strats SM's fluctuations based on previous trends. It's commonly used to predict Strats SM's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Strats SM's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Strats SM'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. Strats SM Trust 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.
Strats SM Projected Return Density Against Market
Considering the 90-day investment horizon Strats SM Trust has a beta of -0.0635 . This usually indicates as returns on the benchmark increase, returns on holding Strats SM are expected to decrease at a much lower rate. During a bear market, however, Strats SM Trust is likely to outperform the market.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 Strats SM or Capital Markets 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 Strats SM's price will be affected by overall stock 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 Strats stock'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.
Strats SM Trust has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Strats SM Price Volatility?
Several factors can influence a stock'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.Strats SM Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Strats SM is 11463.97. The daily returns are distributed with a variance of 0.3 and standard deviation of 0.55. The mean deviation of Strats SM Trust is currently at 0.34. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | -0.01 | |
β | Beta against Dow Jones | -0.06 | |
σ | Overall volatility | 0.55 | |
Ir | Information ratio | -0.12 |
Strats SM Stock Return Volatility
Strats SM historical daily return volatility represents how much of Strats SM stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 0.5461% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7252% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Strats SM Volatility
Volatility is a rate at which the price of Strats SM 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 Strats SM may increase or decrease. In other words, similar to Strats's beta indicator, it measures the risk of Strats SM and helps estimate the fluctuations that may happen in a short period of time. So if prices of Strats SM 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 Strats SM's volatility to invest better
Higher Strats SM's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Strats SM Trust stock 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. Strats SM Trust stock 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 Strats SM Trust investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Strats SM's stock 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 Strats SM's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Strats SM Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.73 and is 1.33 times more volatile than Strats SM Trust. 4 percent of all equities and portfolios are less risky than Strats SM. You can use Strats SM Trust to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Strats SM to be traded at $24.37 in 90 days.Good diversification
The correlation between Strats SM Trust and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Strats SM Trust and DJI in the same portfolio, assuming nothing else is changed.
Strats SM Additional Risk Indicators
The analysis of Strats SM'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 Strats SM's investment and either accepting that risk or mitigating it. Along with some common measures of Strats SM stock'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 | (0.01) | |||
| Market Risk Adjusted Performance | 0.2463 | |||
| Mean Deviation | 0.382 | |||
| Coefficient Of Variation | (11,659) | |||
| Standard Deviation | 0.5836 | |||
| Variance | 0.3406 | |||
| Information Ratio | (0.12) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Strats SM 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 Strats SM 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. Strats SM'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, Strats SM'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 Strats SM Trust.
When determining whether Strats SM Trust is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Strats Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Strats Sm Trust Stock. Highlighted below are key reports to facilitate an investment decision about Strats Sm Trust Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Strats SM Trust. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in inflation. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Strats SM. If investors know Strats will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Strats SM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Strats SM Trust is measured differently than its book value, which is the value of Strats that is recorded on the company's balance sheet. Investors also form their own opinion of Strats SM's value that differs from its market value or its book value, called intrinsic value, which is Strats SM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Strats SM's market value can be influenced by many factors that don't directly affect Strats SM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Strats SM's value and its price as these two are different measures arrived at by different means. Investors typically determine if Strats SM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Strats SM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.