International Equity Index Fund Volatility

PIDIX Fund  USD 11.94  0.01  0.08%   
International Equity holds Efficiency (Sharpe) Ratio of -0.0337, which attests that the entity had a -0.0337% return per unit of risk over the last 3 months. International Equity exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out International Equity's Standard Deviation of 0.8705, market risk adjusted performance of (0.14), and Risk Adjusted Performance of (0.05) to validate the risk estimate we provide. Key indicators related to International Equity's volatility include:
60 Days Market Risk
Chance Of Distress
60 Days Economic Sensitivity
International Equity 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 International daily returns, and it is calculated using variance and standard deviation. We also use International's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of International Equity volatility.
  
Downward market volatility can be a perfect environment for investors who play the long game with International Equity. They may decide to buy additional shares of International Equity at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.

Moving together with International Mutual Fund

  0.94PFIEX International EquityPairCorr
  0.92PFISX International Small PanyPairCorr

Moving against International Mutual Fund

  0.69PGWIX Midcap GrowthPairCorr
  0.69PHPPX Midcap GrowthPairCorr
  0.69PIPPX Midcap GrowthPairCorr
  0.68PHASX Midcap GrowthPairCorr
  0.65PGBFX Blue Chip FundPairCorr
  0.63PGBHX Blue Chip FundPairCorr
  0.54PGRTX Smallcap GrowthPairCorr
  0.46SACAX Strategic Asset ManaPairCorr
  0.35SABPX Strategic Asset ManaPairCorr

International Equity Market Sensitivity And Downside Risk

International Equity's beta coefficient measures the volatility of International 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 International mutual fund's returns against your selected market. In other words, International Equity's beta of 0.45 provides an investor with an approximation of how much risk International Equity mutual fund can potentially add to one of your existing portfolios. International Equity Index exhibits very low volatility with skewness of 0.15 and kurtosis of 0.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure International Equity'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 International Equity'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 International Equity Demand Trend
Check current 90 days International Equity correlation with market (Dow Jones Industrial)

International Beta

    
  0.45  
International 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

    
  0.85  
It is essential to understand the difference between upside risk (as represented by International Equity's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of International Equity's daily returns or price. Since the actual investment returns on holding a position in international 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 International Equity.

International Equity Mutual Fund Volatility Analysis

Volatility refers to the frequency at which International Equity fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with International Equity's price changes. Investors will then calculate the volatility of International Equity'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 International Equity's volatility:

Historical Volatility

This type of fund volatility measures International Equity's fluctuations based on previous trends. It's commonly used to predict International Equity'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 International Equity'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 International Equity'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. International Equity 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.

International Equity Projected Return Density Against Market

Assuming the 90 days horizon International Equity has a beta of 0.4543 indicating as returns on the market go up, International Equity average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding International Equity Index 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 International Equity or Principal Funds 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 International Equity'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 International 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.
International Equity Index 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  
International Equity's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how international mutual fund's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an International Equity 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.

International Equity Mutual Fund Risk Measures

Assuming the 90 days horizon the coefficient of variation of International Equity is -2967.58. The daily returns are distributed with a variance of 0.73 and standard deviation of 0.85. The mean deviation of International Equity Index is currently at 0.66. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α
Alpha over Dow Jones
-0.12
β
Beta against Dow Jones0.45
σ
Overall volatility
0.85
Ir
Information ratio -0.2

International Equity Mutual Fund Return Volatility

International Equity historical daily return volatility represents how much of International Equity fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.8548% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7454% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About International Equity Volatility

Volatility is a rate at which the price of International Equity 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 International Equity may increase or decrease. In other words, similar to International's beta indicator, it measures the risk of International Equity and helps estimate the fluctuations that may happen in a short period of time. So if prices of International Equity 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 invests at least 80 percent of its net assets, plus any borrowings for investment purposes, in securities that compose the MSCI EAFE Index at the time of purchase. The index is a market-weighted equity index designed to measure the equity performance of developed markets, excluding the United States and Canada. The advisor employs a passive investment approach designed to attempt to track the performance of the index.
International Equity'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 International Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much International Equity's price varies over time.

3 ways to utilize International Equity's volatility to invest better

Higher International Equity's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of International Equity 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. International Equity 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 International Equity investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in International Equity'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 International Equity's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

International Equity Investment Opportunity

International Equity Index has a volatility of 0.85 and is 1.13 times more volatile than Dow Jones Industrial. 7 percent of all equities and portfolios are less risky than International Equity. You can use International Equity Index to enhance the returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of International Equity to be traded at $12.54 in 90 days.

Very weak diversification

The correlation between International Equity Index and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding International Equity Index and DJI in the same portfolio, assuming nothing else is changed.

International Equity Additional Risk Indicators

The analysis of International Equity'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 International Equity's investment and either accepting that risk or mitigating it. Along with some common measures of International Equity 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.
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.

International Equity 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 International Equity 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. International Equity'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, International Equity'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 International Equity Index.

Other Information on Investing in International Mutual Fund

International Equity financial ratios help investors to determine whether International 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 International with respect to the benefits of owning International Equity security.
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like