Vaneck Biotech Etf Volatility

BBH Etf  USD 167.01  1.88  1.14%   
We consider VanEck Biotech very steady. VanEck Biotech ETF owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0221, which indicates the etf had a 0.0221% return per unit of risk over the last 3 months. We have found thirty technical indicators for VanEck Biotech ETF, which you can use to evaluate the volatility of the etf. Please validate VanEck Biotech's Coefficient Of Variation of 1447.89, semi deviation of 0.8493, and Risk Adjusted Performance of 0.0426 to confirm if the risk estimate we provide is consistent with the expected return of 0.0213%. Key indicators related to VanEck Biotech's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
VanEck Biotech 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 VanEck daily returns, and it is calculated using variance and standard deviation. We also use VanEck's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of VanEck Biotech volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as VanEck Biotech can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of VanEck Biotech at lower prices. For example, an investor can purchase VanEck stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of VanEck Biotech's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

VanEck Biotech Market Sensitivity And Downside Risk

VanEck Biotech's beta coefficient measures the volatility of VanEck 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 VanEck etf's returns against your selected market. In other words, VanEck Biotech's beta of -0.16 provides an investor with an approximation of how much risk VanEck Biotech etf can potentially add to one of your existing portfolios. VanEck Biotech ETF has low volatility with Treynor Ratio of -0.35, Maximum Drawdown of 4.73 and kurtosis of 0.29. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure VanEck Biotech's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact VanEck Biotech's 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 VanEck Biotech ETF Demand Trend
Check current 90 days VanEck Biotech correlation with market (NYSE Composite)

VanEck Beta

    
  -0.16  
VanEck 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

    
  0.96  
It is essential to understand the difference between upside risk (as represented by VanEck Biotech's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of VanEck Biotech's daily returns or price. Since the actual investment returns on holding a position in vaneck 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 VanEck Biotech.

Using VanEck Put Option to Manage Risk

Put options written on VanEck Biotech grant holders of the option the right to sell a specified amount of VanEck Biotech at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of VanEck Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge VanEck Biotech's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding VanEck Biotech will be realized, the loss incurred will be offset by the profits made with the option trade.

VanEck Biotech's PUT expiring on 2024-04-19

   Profit   
       VanEck Biotech Price At Expiration  

VanEck Biotech ETF Etf Volatility Analysis

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

Historical Volatility

This type of etf volatility measures VanEck Biotech's fluctuations based on previous trends. It's commonly used to predict VanEck Biotech's 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 VanEck Biotech's 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 VanEck Biotech'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. VanEck Biotech ETF 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.

VanEck Biotech Projected Return Density Against Market

Considering the 90-day investment horizon VanEck Biotech ETF has a beta of -0.1618 suggesting as returns on benchmark increase, returns on holding VanEck Biotech are expected to decrease at a much lower rate. During the bear market, however, VanEck Biotech ETF 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 VanEck Biotech or VanEck 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 VanEck Biotech's 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 VanEck 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.
VanEck Biotech ETF has an alpha of 0.077, implying that it can generate a 0.077 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
VanEck Biotech's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how vaneck etf'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 a VanEck Biotech 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.

VanEck Biotech Etf Risk Measures

Considering the 90-day investment horizon the coefficient of variation of VanEck Biotech is 4515.83. The daily returns are distributed with a variance of 0.93 and standard deviation of 0.96. The mean deviation of VanEck Biotech ETF is currently at 0.72. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.08
β
Beta against NYSE Composite-0.16
σ
Overall volatility
0.96
Ir
Information ratio -0.07

VanEck Biotech Etf Return Volatility

VanEck Biotech historical daily return volatility represents how much of VanEck Biotech etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Etf has volatility of 0.9637% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About VanEck Biotech Volatility

Volatility is a rate at which the price of VanEck Biotech 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 VanEck Biotech may increase or decrease. In other words, similar to VanEck's beta indicator, it measures the risk of VanEck Biotech and helps estimate the fluctuations that may happen in a short period of time. So if prices of VanEck Biotech 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 normally invests at least 80 percent of its total assets in securities that comprise the funds benchmark index. Vaneck Biotech is traded on NASDAQ Exchange in the United States.
VanEck Biotech'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 VanEck Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much VanEck Biotech's price varies over time.

3 ways to utilize VanEck Biotech's volatility to invest better

Higher VanEck Biotech's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of VanEck Biotech ETF 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. VanEck Biotech ETF 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 VanEck Biotech ETF investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in VanEck Biotech's 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 VanEck Biotech's etf 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.

VanEck Biotech Investment Opportunity

VanEck Biotech ETF has a volatility of 0.96 and is 1.68 times more volatile than NYSE Composite. 8 percent of all equities and portfolios are less risky than VanEck Biotech. You can use VanEck Biotech ETF to enhance the returns of your portfolios. The etf experiences a large bullish trend. Check odds of VanEck Biotech to be traded at $183.71 in 90 days.

Good diversification

The correlation between VanEck Biotech ETF and NYA is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Biotech ETF and NYA in the same portfolio, assuming nothing else is changed.

VanEck Biotech Additional Risk Indicators

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

VanEck Biotech 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 VanEck Biotech 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. VanEck Biotech'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, VanEck Biotech'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 VanEck Biotech ETF.
When determining whether VanEck Biotech ETF offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of VanEck Biotech's 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 Vaneck Biotech Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Vaneck Biotech Etf:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in VanEck Biotech ETF. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the VanEck Biotech ETF information on this page should be used as a complementary analysis to other VanEck Biotech's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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The market value of VanEck Biotech ETF is measured differently than its book value, which is the value of VanEck that is recorded on the company's balance sheet. Investors also form their own opinion of VanEck Biotech's value that differs from its market value or its book value, called intrinsic value, which is VanEck Biotech's 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 VanEck Biotech's market value can be influenced by many factors that don't directly affect VanEck Biotech's 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 VanEck Biotech's value and its price as these two are different measures arrived at by different means. Investors typically determine if VanEck Biotech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VanEck Biotech's 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.