Pcm Fund Volatility
| PCM Fund | USD 6.47 0.02 0.31% |
Pcm Fund maintains Sharpe Ratio (i.e., Efficiency) of -0.13, which implies the entity had a -0.13 % return per unit of risk over the last 3 months. Pcm Fund exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Pcm Fund's Risk Adjusted Performance of (0.12), variance of 3.7, and Coefficient Of Variation of (697.72) to confirm the risk estimate we provide. Key indicators related to Pcm Fund's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Pcm Fund 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 Pcm daily returns, and it is calculated using variance and standard deviation. We also use Pcm's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Pcm Fund volatility.
Pcm |
Downward market volatility can be a perfect environment for investors who play the long game with Pcm Fund. They may decide to buy additional shares of Pcm Fund at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Pcm Fund
| 0.61 | SMPIX | Semiconductor Ultrasector Steady Growth | PairCorr |
| 0.69 | SMPSX | Semiconductor Ultrasector | PairCorr |
Moving against Pcm Fund
| 0.68 | OSPPX | Oppenheimer Steelpath Mlp | PairCorr |
| 0.68 | SPMPX | Invesco Steelpath Mlp | PairCorr |
| 0.68 | SPMJX | Invesco Steelpath Mlp | PairCorr |
| 0.67 | HFHAX | Hartford Floating | PairCorr |
| 0.56 | GCSLX | Pioneer Global Equity | PairCorr |
| 0.53 | GTSXX | Money Market Obligations | PairCorr |
| 0.52 | GAGEX | Guinness Atkinson Global | PairCorr |
| 0.49 | HFYTX | Hartford Schroders | PairCorr |
| 0.45 | USSTX | Tax Exempt Short | PairCorr |
Pcm Fund Market Sensitivity And Downside Risk
Pcm Fund's beta coefficient measures the volatility of Pcm 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 Pcm fund's returns against your selected market. In other words, Pcm Fund's beta of -0.12 provides an investor with an approximation of how much risk Pcm Fund fund can potentially add to one of your existing portfolios. Pcm Fund exhibits very low volatility with skewness of -5.36 and kurtosis of 38.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pcm Fund'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 Pcm Fund'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 Pcm Fund Demand TrendCheck current 90 days Pcm Fund correlation with market (Dow Jones Industrial)Pcm Beta |
Pcm 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 | 2.0 |
It is essential to understand the difference between upside risk (as represented by Pcm Fund's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Pcm Fund's daily returns or price. Since the actual investment returns on holding a position in pcm 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 Pcm Fund.
Pcm Fund Fund Volatility Analysis
Volatility refers to the frequency at which Pcm Fund fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Pcm Fund's price changes. Investors will then calculate the volatility of Pcm Fund'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 Pcm Fund's volatility:
Historical Volatility
This type of fund volatility measures Pcm Fund's fluctuations based on previous trends. It's commonly used to predict Pcm Fund'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 Pcm Fund'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 Pcm Fund'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. Pcm Fund 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.
Pcm Fund Projected Return Density Against Market
Considering the 90-day investment horizon Pcm Fund has a beta of -0.1213 indicating as returns on the benchmark increase, returns on holding Pcm Fund are expected to decrease at a much lower rate. During a bear market, however, Pcm Fund 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 Pcm Fund or Financial Services 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 Pcm Fund'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 Pcm 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.
Pcm Fund 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 Pcm Fund 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.Pcm Fund Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Pcm Fund is -757.48. The daily returns are distributed with a variance of 4.0 and standard deviation of 2.0. The mean deviation of Pcm Fund is currently at 0.89. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.87
α | Alpha over Dow Jones | -0.3 | |
β | Beta against Dow Jones | -0.12 | |
σ | Overall volatility | 2.00 | |
Ir | Information ratio | -0.09 |
Pcm Fund Fund Return Volatility
Pcm Fund historical daily return volatility represents how much of Pcm Fund fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 2.0005% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.9084% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Pcm Fund Volatility
Volatility is a rate at which the price of Pcm Fund 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 Pcm Fund may increase or decrease. In other words, similar to Pcm's beta indicator, it measures the risk of Pcm Fund and helps estimate the fluctuations that may happen in a short period of time. So if prices of Pcm Fund 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.PCM Fund Inc. is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It seeks to invest in fixed income markets. The fund invests primarily in commercial mortgage-backed securities. It employs fundamental analysis with a focus on top down stock picking approach to create its portfolio. The fund benchmarks the performance of its portfolio against Barclays CMBS Investment Grade Index. PCM Fund Inc was formed on September 2, 1993 and is domiciled in the United States.
Pcm Fund's 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 Pcm Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Pcm Fund's price varies over time.
3 ways to utilize Pcm Fund's volatility to invest better
Higher Pcm Fund's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Pcm Fund 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. Pcm Fund 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 Pcm Fund investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Pcm Fund'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 Pcm Fund's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Pcm Fund Investment Opportunity
Pcm Fund has a volatility of 2.0 and is 2.2 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Pcm Fund is lower than 17 percent of all global equities and portfolios over the last 90 days. You can use Pcm Fund to protect your portfolios against small market fluctuations. The fund experiences a normal downward trend and little activity. Check odds of Pcm Fund to be traded at $6.41 in 90 days.Good diversification
The correlation between Pcm Fund and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pcm Fund and DJI in the same portfolio, assuming nothing else is changed.
Pcm Fund Additional Risk Indicators
The analysis of Pcm Fund'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 Pcm Fund's investment and either accepting that risk or mitigating it. Along with some common measures of Pcm Fund 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 | (0.12) | |||
| Market Risk Adjusted Performance | 2.37 | |||
| Mean Deviation | 0.8912 | |||
| Coefficient Of Variation | (697.72) | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.7 | |||
| Information Ratio | (0.09) |
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.
Pcm Fund 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 Pcm Fund 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. Pcm Fund'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, Pcm Fund'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 Pcm Fund.
Other Information on Investing in Pcm Fund
Pcm Fund financial ratios help investors to determine whether Pcm 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 Pcm with respect to the benefits of owning Pcm Fund security.
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