Strategy Shares Etf Volatility
| NZRO Etf | USD 23.06 0.00 0.00% |
We have found twenty-four technical indicators for Strategy Shares, which you can use to evaluate the volatility of the etf. Please validate Strategy Shares' Semi Deviation of 0.7467, risk adjusted performance of 0.109, and Coefficient Of Variation of 679.29 to confirm if the risk estimate we provide is consistent with the expected return of 0.0%. Key indicators related to Strategy Shares' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Strategy Shares 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 Strategy daily returns, and it is calculated using variance and standard deviation. We also use Strategy's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Strategy Shares volatility.
Strategy |
Downward market volatility can be a perfect environment for investors who play the long game with Strategy Shares. They may decide to buy additional shares of Strategy Shares at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Strategy Etf
| 0.89 | VUG | Vanguard Growth Index | PairCorr |
| 0.88 | IWF | iShares Russell 1000 | PairCorr |
| 0.86 | IVW | iShares SP 500 | PairCorr |
| 0.86 | SPYG | SPDR Portfolio SP | PairCorr |
| 0.86 | IUSG | iShares Core SP | PairCorr |
| 0.88 | VONG | Vanguard Russell 1000 | PairCorr |
| 0.88 | MGK | Vanguard Mega Cap | PairCorr |
| 0.88 | VRGWX | Vanguard Russell 1000 | PairCorr |
| 0.85 | QQQM | Invesco NASDAQ 100 | PairCorr |
Strategy Shares Market Sensitivity And Downside Risk
Strategy Shares' beta coefficient measures the volatility of Strategy 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 Strategy etf's returns against your selected market. In other words, Strategy Shares's beta of 0.11 provides an investor with an approximation of how much risk Strategy Shares etf can potentially add to one of your existing portfolios. Strategy Shares has low volatility with Treynor Ratio of 1.13, Maximum Drawdown of 3.6 and kurtosis of -0.39. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Strategy Shares' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Strategy Shares' 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 Strategy Shares Demand TrendCheck current 90 days Strategy Shares correlation with market (Dow Jones Industrial)Strategy Beta |
Strategy 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 | 0.0 |
It is essential to understand the difference between upside risk (as represented by Strategy Shares's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Strategy Shares' daily returns or price. Since the actual investment returns on holding a position in strategy 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 Strategy Shares.
Strategy Shares Etf Volatility Analysis
Volatility refers to the frequency at which Strategy Shares etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Strategy Shares' price changes. Investors will then calculate the volatility of Strategy Shares' 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 Strategy Shares' volatility:
Historical Volatility
This type of etf volatility measures Strategy Shares' fluctuations based on previous trends. It's commonly used to predict Strategy Shares' 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 Strategy Shares' 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 Strategy Shares' to be redeemed at a future date.Transformation |
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Strategy Shares Projected Return Density Against Market
Given the investment horizon of 90 days Strategy Shares has a beta of 0.1108 . This indicates as returns on the market go up, Strategy Shares average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Strategy Shares 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 Strategy Shares or Strategy Shares 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 Strategy Shares' 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 Strategy 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.
Strategy Shares has an alpha of 0.114, implying that it can generate a 0.11 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Strategy Shares 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.Strategy Shares Etf Return Volatility
Strategy Shares historical daily return volatility represents how much of Strategy Shares etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 0.0% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7349% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Strategy Shares Volatility
Volatility is a rate at which the price of Strategy Shares 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 Strategy Shares may increase or decrease. In other words, similar to Strategy's beta indicator, it measures the risk of Strategy Shares and helps estimate the fluctuations that may happen in a short period of time. So if prices of Strategy Shares 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.The fund seeks to achieve its investment objective by investing in the equity securities of companies that are committed to curbing or mitigating the deleterious effects of climate change. Strategy Shares is traded on NASDAQ Exchange in the United States.
Strategy Shares' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Strategy Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Strategy Shares' price varies over time.
3 ways to utilize Strategy Shares' volatility to invest better
Higher Strategy Shares' etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Strategy Shares 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. Strategy Shares 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 Strategy Shares investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Strategy Shares' 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 Strategy Shares' etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Strategy Shares Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.73 and is 9.223372036854776E16 times more volatile than Strategy Shares. 0 percent of all equities and portfolios are less risky than Strategy Shares. You can use Strategy Shares to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Strategy Shares to be traded at $22.83 in 90 days.Significant diversification
The correlation between Strategy Shares and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Strategy Shares and DJI in the same portfolio, assuming nothing else is changed.
Strategy Shares Additional Risk Indicators
The analysis of Strategy Shares' 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 Strategy Shares' investment and either accepting that risk or mitigating it. Along with some common measures of Strategy Shares 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 | 0.109 | |||
| Market Risk Adjusted Performance | 1.14 | |||
| Mean Deviation | 0.7351 | |||
| Semi Deviation | 0.7467 | |||
| Downside Deviation | 0.8621 | |||
| Coefficient Of Variation | 679.29 | |||
| Standard Deviation | 0.9187 |
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.
Strategy Shares 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 Strategy Shares 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. Strategy Shares' 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, Strategy Shares' 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 Strategy Shares.
When determining whether Strategy Shares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Strategy Shares' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Strategy Shares Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Strategy Shares Etf: Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
The market value of Strategy Shares is measured differently than its book value, which is the value of Strategy that is recorded on the company's balance sheet. Investors also form their own opinion of Strategy Shares' value that differs from its market value or its book value, called intrinsic value, which is Strategy Shares' 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 Strategy Shares' market value can be influenced by many factors that don't directly affect Strategy Shares' 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 Strategy Shares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Strategy Shares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Strategy Shares' 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.