Flm Etf Volatility

FLM Etf  USD 56.39  0.43  0.77%   
FLM secures Sharpe Ratio (or Efficiency) of -0.0709, which denotes the etf had a -0.0709% return per unit of risk over the last 3 months. FLM exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm FLM's Semi Deviation of 0.2788, downside deviation of 0.6641, and Mean Deviation of 0.6387 to check the risk estimate we provide. Key indicators related to FLM's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
FLM 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 FLM daily returns, and it is calculated using variance and standard deviation. We also use FLM's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of FLM volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as FLM 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 FLM at lower prices. For example, an investor can purchase FLM 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 FLM'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.

Moving together with FLM Etf

  0.73XLI Industrial Select SectorPairCorr
  0.72VIS Vanguard IndustrialsPairCorr
  0.64JETS US Global JetsPairCorr
  0.69FXR First Trust IndustriPairCorr
  0.73PPA Invesco Aerospace DefensePairCorr
  0.74IYJ IShares US IndustrialsPairCorr
  0.76IYT IShares TransportationPairCorr
  0.73FIDU Fidelity MSCI IndustrialsPairCorr

Moving against FLM Etf

  0.79GREI Goldman Sachs FuturePairCorr
  0.64BITI ProShares Trust -PairCorr

FLM Market Sensitivity And Downside Risk

FLM's beta coefficient measures the volatility of FLM 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 FLM etf's returns against your selected market. In other words, FLM's beta of -0.24 provides an investor with an approximation of how much risk FLM etf can potentially add to one of your existing portfolios. FLM exhibits relatively low volatility with skewness of 0.94 and kurtosis of 2.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FLM'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 FLM'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 FLM Demand Trend
Check current 90 days FLM correlation with market (NYSE Composite)

FLM Beta

    
  -0.24  
FLM 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

    
  0.68  
It is essential to understand the difference between upside risk (as represented by FLM's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of FLM's daily returns or price. Since the actual investment returns on holding a position in flm 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 FLM.

FLM Etf Volatility Analysis

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

Historical Volatility

This type of etf volatility measures FLM's fluctuations based on previous trends. It's commonly used to predict FLM'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 FLM'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 FLM's to be redeemed at a future date.
Transformation
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FLM Projected Return Density Against Market

Considering the 90-day investment horizon FLM has a beta of -0.2379 . This usually indicates as returns on benchmark increase, returns on holding FLM are expected to decrease at a much lower rate. During the bear market, however, FLM 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 FLM or First Trust 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 FLM'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 FLM 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.
FLM has an alpha of 0.2285, implying that it can generate a 0.23 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
FLM's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how flm 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 FLM 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.

FLM Etf Risk Measures

Considering the 90-day investment horizon the coefficient of variation of FLM is -1410.06. The daily returns are distributed with a variance of 0.46 and standard deviation of 0.68. The mean deviation of FLM is currently at 0.52. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.23
β
Beta against NYSE Composite-0.24
σ
Overall volatility
0.68
Ir
Information ratio 0.09

FLM Etf Return Volatility

FLM historical daily return volatility represents how much of FLM etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF has volatility of 0.6796% 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 FLM Volatility

Volatility is a rate at which the price of FLM 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 FLM may increase or decrease. In other words, similar to FLM's beta indicator, it measures the risk of FLM and helps estimate the fluctuations that may happen in a short period of time. So if prices of FLM 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 will normally invest at least 90 percent of its net assets in the common stocks and depositary receipts that comprise the index. First Trust is traded on PCX Exchange in the United States.
FLM'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 FLM Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much FLM's price varies over time.

3 ways to utilize FLM's volatility to invest better

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

FLM Investment Opportunity

FLM has a volatility of 0.68 and is 1.19 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of FLM is lower than 5 percent of all global equities and portfolios over the last 90 days. You can use FLM to enhance the returns of your portfolios. The etf experiences a moderate upward volatility. Check odds of FLM to be traded at $62.03 in 90 days.

Good diversification

The correlation between FLM and NYA is -0.15 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding FLM and NYA in the same portfolio, assuming nothing else is changed.

FLM Additional Risk Indicators

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

FLM 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 FLM 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. FLM'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, FLM'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 FLM.
When determining whether FLM is a strong investment it is important to analyze FLM's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact FLM's future performance. For an informed investment choice regarding FLM Etf, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios. 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 economic analysis.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running FLM's price analysis, check to measure FLM's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy FLM is operating at the current time. Most of FLM's value examination focuses on studying past and present price action to predict the probability of FLM's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FLM's price. Additionally, you may evaluate how the addition of FLM to your portfolios can decrease your overall portfolio volatility.
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The market value of FLM is measured differently than its book value, which is the value of FLM that is recorded on the company's balance sheet. Investors also form their own opinion of FLM's value that differs from its market value or its book value, called intrinsic value, which is FLM'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 FLM's market value can be influenced by many factors that don't directly affect FLM'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 FLM's value and its price as these two are different measures arrived at by different means. Investors typically determine if FLM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FLM'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.