Jpmorgan Tech Leaders Etf Volatility
| JTEK Etf | 70.87 0.41 0.58% |
JPMorgan Tech Leaders holds Efficiency (Sharpe) Ratio of -0.0647, which attests that the entity had a -0.0647 % return per unit of volatility over the last 3 months. JPMorgan Tech Leaders exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out JPMorgan Tech's risk adjusted performance of (0.06), and Market Risk Adjusted Performance of (0.13) to validate the risk estimate we provide. Key indicators related to JPMorgan Tech's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
JPMorgan Tech Etf 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 JPMorgan daily returns, and it is calculated using variance and standard deviation. We also use JPMorgan's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of JPMorgan Tech volatility.
JPMorgan |
Downward market volatility can be a perfect environment for investors who play the long game with JPMorgan Tech. They may decide to buy additional shares of JPMorgan Tech at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with JPMorgan Etf
| 0.88 | VGT | Vanguard Information | PairCorr |
| 0.9 | XLK | Technology Select Sector | PairCorr |
| 0.91 | IYW | iShares Technology ETF | PairCorr |
| 0.83 | SMH | VanEck Semiconductor ETF | PairCorr |
| 0.84 | SOXX | iShares Semiconductor ETF | PairCorr |
| 0.71 | CIBR | First Trust NASDAQ | PairCorr |
| 0.88 | FTEC | Fidelity MSCI Information | PairCorr |
| 0.96 | IGV | iShares Expanded Tech | PairCorr |
| 0.98 | FDN | First Trust Dow | PairCorr |
Moving against JPMorgan Etf
JPMorgan Tech Market Sensitivity And Downside Risk
JPMorgan Tech's beta coefficient measures the volatility of JPMorgan etf 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 JPMorgan etf's returns against your selected market. In other words, JPMorgan Tech's beta of 1.22 provides an investor with an approximation of how much risk JPMorgan Tech etf can potentially add to one of your existing portfolios. JPMorgan Tech Leaders exhibits very low volatility with skewness of -0.81 and kurtosis of 0.48. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure JPMorgan Tech's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact JPMorgan Tech's etf 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 JPMorgan Tech Leaders Demand TrendCheck current 90 days JPMorgan Tech correlation with market (Dow Jones Industrial)JPMorgan Beta |
JPMorgan 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 | 2.06 |
It is essential to understand the difference between upside risk (as represented by JPMorgan Tech's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of JPMorgan Tech's daily returns or price. Since the actual investment returns on holding a position in jpmorgan etf 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 JPMorgan Tech.
JPMorgan Tech Leaders Etf Volatility Analysis
Volatility refers to the frequency at which JPMorgan Tech etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with JPMorgan Tech's price changes. Investors will then calculate the volatility of JPMorgan Tech's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf 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 JPMorgan Tech's volatility:
Historical Volatility
This type of etf volatility measures JPMorgan Tech's fluctuations based on previous trends. It's commonly used to predict JPMorgan Tech's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for JPMorgan Tech's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on JPMorgan Tech'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. JPMorgan Tech Leaders 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.
JPMorgan Tech Projected Return Density Against Market
Given the investment horizon of 90 days the etf has the beta coefficient of 1.2169 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, JPMorgan Tech will likely underperform.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 JPMorgan Tech or Technology 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 JPMorgan Tech's price will be affected by overall etf 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 JPMorgan etf'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.
JPMorgan Tech Leaders 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 JPMorgan Tech Price Volatility?
Several factors can influence a etf'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.JPMorgan Tech Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of JPMorgan Tech is -1545.21. The daily returns are distributed with a variance of 4.23 and standard deviation of 2.06. The mean deviation of JPMorgan Tech Leaders is currently at 1.59. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | -0.09 | |
β | Beta against Dow Jones | 1.22 | |
σ | Overall volatility | 2.06 | |
Ir | Information ratio | -0.05 |
JPMorgan Tech Etf Return Volatility
JPMorgan Tech historical daily return volatility represents how much of JPMorgan Tech etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF venture inherits 2.0558% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8377% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About JPMorgan Tech Volatility
Volatility is a rate at which the price of JPMorgan Tech 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 JPMorgan Tech may increase or decrease. In other words, similar to JPMorgan's beta indicator, it measures the risk of JPMorgan Tech and helps estimate the fluctuations that may happen in a short period of time. So if prices of JPMorgan Tech 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 JPMorgan Tech's volatility to invest better
Higher JPMorgan Tech's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of JPMorgan Tech Leaders etf 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. JPMorgan Tech Leaders etf 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 JPMorgan Tech Leaders investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in JPMorgan Tech's etf 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 JPMorgan Tech's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
JPMorgan Tech Investment Opportunity
JPMorgan Tech Leaders has a volatility of 2.06 and is 2.45 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than JPMorgan Tech. You can use JPMorgan Tech Leaders to enhance the returns of your portfolios. The etf experiences a moderate upward volatility. Check odds of JPMorgan Tech to be traded at 77.96 in 90 days.Very weak diversification
The correlation between JPMorgan Tech Leaders and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Tech Leaders and DJI in the same portfolio, assuming nothing else is changed.
JPMorgan Tech Additional Risk Indicators
The analysis of JPMorgan Tech'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 JPMorgan Tech's investment and either accepting that risk or mitigating it. Along with some common measures of JPMorgan Tech etf'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 | (0.06) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 1.62 | |||
| Coefficient Of Variation | (1,318) | |||
| Standard Deviation | 2.08 | |||
| Variance | 4.31 | |||
| Information Ratio | (0.05) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
JPMorgan Tech 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 JPMorgan Tech 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. JPMorgan Tech'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, JPMorgan Tech'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 JPMorgan Tech Leaders.
When determining whether JPMorgan Tech Leaders 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 JPMorgan Etf 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 Jpmorgan Tech Leaders Etf. Highlighted below are key reports to facilitate an investment decision about Jpmorgan Tech Leaders Etf: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in JPMorgan Tech Leaders. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
The market value of JPMorgan Tech Leaders is measured differently than its book value, which is the value of JPMorgan that is recorded on the company's balance sheet. Investors also form their own opinion of JPMorgan Tech's value that differs from its market value or its book value, called intrinsic value, which is JPMorgan Tech'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 JPMorgan Tech's market value can be influenced by many factors that don't directly affect JPMorgan Tech'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 JPMorgan Tech's value and its price as these two are different measures arrived at by different means. Investors typically determine if JPMorgan Tech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JPMorgan Tech'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.