UBS Money (Germany) Volatility
| UG72 Fund | EUR 1,949 3.44 0.18% |
At this point, UBS Money is very steady. UBS Money Market owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.36, which indicates the fund had a 0.36% return per unit of standard deviation over the last 3 months. We have found twenty-seven technical indicators for UBS Money Market, which you can use to evaluate the volatility of the entity. Please validate UBS Money's Coefficient Of Variation of 328.39, market risk adjusted performance of 0.6051, and Risk Adjusted Performance of 0.2303 to confirm if the risk estimate we provide is consistent with the expected return of 0.14%.
UBS |
UBS Money 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 UBS daily returns, and it is calculated using variance and standard deviation. We also use UBS's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of UBS Money volatility.
Downward market volatility can be a perfect environment for investors who play the long game with UBS Money. They may decide to buy additional shares of UBS Money at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with UBS Fund
Moving against UBS Fund
| 0.72 | 0P00000PM8 | Renaissance Europe | PairCorr |
| 0.6 | 0P00008W4A | Pacteo Actions Europe | PairCorr |
| 0.52 | DBPD | Xtrackers ShortDAX | PairCorr |
UBS Money Market Sensitivity And Downside Risk
UBS Money's beta coefficient measures the volatility of UBS 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 UBS fund's returns against your selected market. In other words, UBS Money's beta of 0.18 provides an investor with an approximation of how much risk UBS Money fund can potentially add to one of your existing portfolios. UBS Money Market exhibits very low volatility with skewness of 0.64 and kurtosis of 0.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure UBS Money'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 UBS Money'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 UBS Money Market Demand TrendCheck current 90 days UBS Money correlation with market (Dow Jones Industrial)UBS Beta |
UBS 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 | 0.38 |
It is essential to understand the difference between upside risk (as represented by UBS Money's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of UBS Money's daily returns or price. Since the actual investment returns on holding a position in ubs 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 UBS Money.
UBS Money Market Fund Volatility Analysis
Volatility refers to the frequency at which UBS Money fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with UBS Money's price changes. Investors will then calculate the volatility of UBS Money'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 UBS Money's volatility:
Historical Volatility
This type of fund volatility measures UBS Money's fluctuations based on previous trends. It's commonly used to predict UBS Money'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 UBS Money'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 UBS Money'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. UBS Money Market 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.
UBS Money Projected Return Density Against Market
Assuming the 90 days trading horizon UBS Money has a beta of 0.1766 . This usually implies as returns on the market go up, UBS Money average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding UBS Money Market 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 UBS Money or Money Market 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 UBS Money'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 UBS 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.
UBS Money Market has an alpha of 0.1012, implying that it can generate a 0.1 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an UBS Money 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.UBS Money Fund Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of UBS Money is 280.11. The daily returns are distributed with a variance of 0.15 and standard deviation of 0.38. The mean deviation of UBS Money Market is currently at 0.31. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.10 | |
β | Beta against Dow Jones | 0.18 | |
σ | Overall volatility | 0.38 | |
Ir | Information ratio | 0.22 |
UBS Money Fund Return Volatility
UBS Money historical daily return volatility represents how much of UBS Money fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund accepts 0.3834% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8045% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About UBS Money Volatility
Volatility is a rate at which the price of UBS Money 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 UBS Money may increase or decrease. In other words, similar to UBS's beta indicator, it measures the risk of UBS Money and helps estimate the fluctuations that may happen in a short period of time. So if prices of UBS Money 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 UBS Money's volatility to invest better
Higher UBS Money's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of UBS Money Market 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. UBS Money Market 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 UBS Money Market investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in UBS Money'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 UBS Money's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
UBS Money Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.8 and is 2.11 times more volatile than UBS Money Market. Compared to the overall equity markets, volatility of historical daily returns of UBS Money Market is lower than 3 percent of all global equities and portfolios over the last 90 days. You can use UBS Money Market to enhance the returns of your portfolios. The fund experiences a normal upward fluctuation. Check odds of UBS Money to be traded at €2046.49 in 90 days.Weak diversification
The correlation between UBS Money Market and DJI is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding UBS Money Market and DJI in the same portfolio, assuming nothing else is changed.
UBS Money Additional Risk Indicators
The analysis of UBS Money'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 UBS Money's investment and either accepting that risk or mitigating it. Along with some common measures of UBS Money 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 | 0.2303 | |||
| Market Risk Adjusted Performance | 0.6051 | |||
| Mean Deviation | 0.3009 | |||
| Downside Deviation | 0.2741 | |||
| Coefficient Of Variation | 328.39 | |||
| Standard Deviation | 0.3779 | |||
| Variance | 0.1428 |
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.
UBS Money 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 UBS Money 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. UBS Money'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, UBS Money'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 UBS Money Market.
Other Information on Investing in UBS Fund
UBS Money financial ratios help investors to determine whether UBS 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 UBS with respect to the benefits of owning UBS Money security.
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |