Wesmark Tactical Opportunity Fund Volatility
| WMKTX Fund | USD 11.88 0.04 0.34% |
At this stage we consider Wesmark Mutual Fund to be very steady. Wesmark Tactical Opp shows Sharpe Ratio of 0.0195, which attests that the fund had a 0.0195% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Wesmark Tactical Opp, which you can use to evaluate the volatility of the fund. Please check out Wesmark Tactical's Downside Deviation of 0.3975, mean deviation of 0.2877, and Market Risk Adjusted Performance of 0.042 to validate if the risk estimate we provide is consistent with the expected return of 0.0071%. Key indicators related to Wesmark Tactical's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Wesmark Tactical 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 Wesmark daily returns, and it is calculated using variance and standard deviation. We also use Wesmark's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Wesmark Tactical volatility.
Wesmark |
Downward market volatility can be a perfect environment for investors who play the long game with Wesmark Tactical. They may decide to buy additional shares of Wesmark Tactical at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Wesmark Mutual Fund
| 0.87 | WMBLX | Wesmark Balanced | PairCorr |
| 0.65 | WMKGX | Wesmark Growth | PairCorr |
| 0.7 | WMKSX | Wesmark Small Pany | PairCorr |
Wesmark Tactical Market Sensitivity And Downside Risk
Wesmark Tactical's beta coefficient measures the volatility of Wesmark 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 Wesmark mutual fund's returns against your selected market. In other words, Wesmark Tactical's beta of 0.39 provides an investor with an approximation of how much risk Wesmark Tactical mutual fund can potentially add to one of your existing portfolios. Wesmark Tactical Opportunity exhibits very low volatility with skewness of 0.12 and kurtosis of -0.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wesmark Tactical'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 Wesmark Tactical'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 Wesmark Tactical Opp Demand TrendCheck current 90 days Wesmark Tactical correlation with market (Dow Jones Industrial)Wesmark Beta |
Wesmark 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 | 0.37 |
It is essential to understand the difference between upside risk (as represented by Wesmark Tactical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Wesmark Tactical's daily returns or price. Since the actual investment returns on holding a position in wesmark 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 Wesmark Tactical.
Wesmark Tactical Opp Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Wesmark Tactical fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Wesmark Tactical's price changes. Investors will then calculate the volatility of Wesmark Tactical'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 Wesmark Tactical's volatility:
Historical Volatility
This type of fund volatility measures Wesmark Tactical's fluctuations based on previous trends. It's commonly used to predict Wesmark Tactical'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 Wesmark Tactical'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 Wesmark Tactical'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. Wesmark Tactical Opp 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.
Wesmark Tactical Projected Return Density Against Market
Assuming the 90 days horizon Wesmark Tactical has a beta of 0.3913 . This entails as returns on the market go up, Wesmark Tactical average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Wesmark Tactical Opportunity 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 Wesmark Tactical or WesMark 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 Wesmark Tactical'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 Wesmark 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.
Wesmark Tactical Opportunity 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 Wesmark Tactical 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.Wesmark Tactical Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Wesmark Tactical is 5116.58. The daily returns are distributed with a variance of 0.13 and standard deviation of 0.37. The mean deviation of Wesmark Tactical Opportunity is currently at 0.28. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.39 | |
σ | Overall volatility | 0.37 | |
Ir | Information ratio | -0.21 |
Wesmark Tactical Mutual Fund Return Volatility
Wesmark Tactical historical daily return volatility represents how much of Wesmark Tactical fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.3652% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Wesmark Tactical Volatility
Volatility is a rate at which the price of Wesmark Tactical 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 Wesmark Tactical may increase or decrease. In other words, similar to Wesmark's beta indicator, it measures the risk of Wesmark Tactical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Wesmark Tactical 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 pursues its investment objective by utilizing a tactical allocation strategy. It primarily invests in a mix of equity and fixed income securities and may also invest in commodity related investments. With respect to its investment in equity securities, the fund may invest in large cap stocks, small- and mid-cap stocks and international equity securities . With respect to its investment in fixed income securities, the fund may invest in domestic or foreign securities, corporate or sovereign, and of any quality or duration.
Wesmark Tactical'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 Wesmark Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Wesmark Tactical's price varies over time.
3 ways to utilize Wesmark Tactical's volatility to invest better
Higher Wesmark Tactical's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Wesmark Tactical Opp 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. Wesmark Tactical Opp 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 Wesmark Tactical Opp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Wesmark Tactical'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 Wesmark Tactical's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Wesmark Tactical Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.73 and is 1.97 times more volatile than Wesmark Tactical Opportunity. 3 percent of all equities and portfolios are less risky than Wesmark Tactical. You can use Wesmark Tactical Opportunity to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Wesmark Tactical to be traded at $11.76 in 90 days.Poor diversification
The correlation between Wesmark Tactical Opportunity and DJI is 0.76 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Tactical Opportunity and DJI in the same portfolio, assuming nothing else is changed.
Wesmark Tactical Additional Risk Indicators
The analysis of Wesmark Tactical'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 Wesmark Tactical's investment and either accepting that risk or mitigating it. Along with some common measures of Wesmark Tactical 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.
| Risk Adjusted Performance | 0.0343 | |||
| Market Risk Adjusted Performance | 0.042 | |||
| Mean Deviation | 0.2877 | |||
| Semi Deviation | 0.305 | |||
| Downside Deviation | 0.3975 | |||
| Coefficient Of Variation | 1656.05 | |||
| Standard Deviation | 0.373 |
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.
Wesmark Tactical 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 Wesmark Tactical 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. Wesmark Tactical'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, Wesmark Tactical'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 Wesmark Tactical Opportunity.
Other Information on Investing in Wesmark Mutual Fund
Wesmark Tactical financial ratios help investors to determine whether Wesmark 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 Wesmark with respect to the benefits of owning Wesmark Tactical security.
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