Invesco Currencyshares Canadian Etf Volatility

FXC Etf  USD 72.16  0.10  0.14%   
Invesco CurrencyShares holds Efficiency (Sharpe) Ratio of -0.0892, which attests that the entity had a -0.0892% return per unit of risk over the last 3 months. Invesco CurrencyShares exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Invesco CurrencyShares' Market Risk Adjusted Performance of (0.54), risk adjusted performance of (0.03), and Standard Deviation of 0.3237 to validate the risk estimate we provide. Key indicators related to Invesco CurrencyShares' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Invesco CurrencyShares 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 Invesco daily returns, and it is calculated using variance and standard deviation. We also use Invesco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Invesco CurrencyShares volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Invesco CurrencyShares 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 Invesco CurrencyShares at lower prices. For example, an investor can purchase Invesco 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 Invesco CurrencyShares' 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 Invesco Etf

  0.77FXF Invesco CurrencyShares Potential GrowthPairCorr
  0.85FXY Invesco CurrencySharesPairCorr
  0.91FXA Invesco CurrencySharesPairCorr

Moving against Invesco Etf

  0.63USNZ DBX ETF TrustPairCorr
  0.62USD ProShares Ultra SemiPairCorr
  0.58UGA United States GasolinePairCorr
  0.55MLPR ETRACS Quarterly PayPairCorr
  0.53SGG Barclays CapitalPairCorr

Invesco CurrencyShares Market Sensitivity And Downside Risk

Invesco CurrencyShares' beta coefficient measures the volatility of Invesco 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 Invesco etf's returns against your selected market. In other words, Invesco CurrencyShares's beta of 0.0438 provides an investor with an approximation of how much risk Invesco CurrencyShares etf can potentially add to one of your existing portfolios. Invesco CurrencyShares Canadian exhibits very low volatility with skewness of -0.12 and kurtosis of 0.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Invesco CurrencyShares' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Invesco CurrencyShares' 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 Invesco CurrencyShares Demand Trend
Check current 90 days Invesco CurrencyShares correlation with market (NYSE Composite)

Invesco Beta

    
  0.0438  
Invesco 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

    
  0.32  
It is essential to understand the difference between upside risk (as represented by Invesco CurrencyShares's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Invesco CurrencyShares' daily returns or price. Since the actual investment returns on holding a position in invesco 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 Invesco CurrencyShares.

Using Invesco Put Option to Manage Risk

Put options written on Invesco CurrencyShares grant holders of the option the right to sell a specified amount of Invesco CurrencyShares 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 Invesco Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Invesco CurrencyShares' 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 Invesco CurrencyShares will be realized, the loss incurred will be offset by the profits made with the option trade.

Invesco CurrencyShares' PUT expiring on 2024-04-19

   Profit   
       Invesco CurrencyShares Price At Expiration  

Current Invesco CurrencyShares Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $84.0-0.79170.023812024-04-1910.0 - 13.012.1View
Put
2024-04-19 PUT at $81.0-0.92230.025512024-04-196.7 - 11.29.3View
Put
2024-04-19 PUT at $78.0-0.85520.045112024-04-193.7 - 8.57.3View
Put
2024-04-19 PUT at $77.0-0.87170.052342024-04-193.5 - 6.55.4View
Put
2024-04-19 PUT at $76.0-0.90570.119212024-04-191.5 - 6.34.2View
Put
2024-04-19 PUT at $75.0-0.74350.082612024-04-191.1 - 5.54.5View
Put
2024-04-19 PUT at $74.0-0.63150.083332024-04-190.7 - 4.91.65View
Put
2024-04-19 PUT at $72.0-0.39820.419122024-04-190.2 - 0.40.35View
View All Invesco CurrencyShares Options

Invesco CurrencyShares Etf Volatility Analysis

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

Historical Volatility

This type of etf volatility measures Invesco CurrencyShares' fluctuations based on previous trends. It's commonly used to predict Invesco CurrencyShares' 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 Invesco CurrencyShares' 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 Invesco CurrencyShares' 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. Invesco CurrencyShares 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.

Invesco CurrencyShares Projected Return Density Against Market

Considering the 90-day investment horizon Invesco CurrencyShares has a beta of 0.0438 . This usually indicates as returns on the market go up, Invesco CurrencyShares average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Invesco CurrencyShares Canadian 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 Invesco CurrencyShares or Invesco 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 Invesco CurrencyShares' 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 Invesco 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.
Invesco CurrencyShares Canadian has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Invesco CurrencyShares' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how invesco 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 an Invesco CurrencyShares 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.

Invesco CurrencyShares Etf Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Invesco CurrencyShares is -1121.65. The daily returns are distributed with a variance of 0.1 and standard deviation of 0.32. The mean deviation of Invesco CurrencyShares Canadian is currently at 0.25. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.03
β
Beta against NYSE Composite0.04
σ
Overall volatility
0.32
Ir
Information ratio -0.46

Invesco CurrencyShares Etf Return Volatility

Invesco CurrencyShares historical daily return volatility represents how much of Invesco CurrencyShares etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.3177% 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 Invesco CurrencyShares Volatility

Volatility is a rate at which the price of Invesco CurrencyShares 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 Invesco CurrencyShares may increase or decrease. In other words, similar to Invesco's beta indicator, it measures the risk of Invesco CurrencyShares and helps estimate the fluctuations that may happen in a short period of time. So if prices of Invesco CurrencyShares 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 sponsor believes that, for many investors, the shares represent a cost-effective investment relative to traditional means of investing in the foreign exchange market. Canadian Dollar is traded on NYSEARCA Exchange in the United States.
Invesco CurrencyShares' 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 Invesco Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Invesco CurrencyShares' price varies over time.

3 ways to utilize Invesco CurrencyShares' volatility to invest better

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

Invesco CurrencyShares Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.57 and is 1.78 times more volatile than Invesco CurrencyShares Canadian. 2 percent of all equities and portfolios are less risky than Invesco CurrencyShares. You can use Invesco CurrencyShares Canadian to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of Invesco CurrencyShares to be traded at $75.77 in 90 days.

Significant diversification

The correlation between Invesco CurrencyShares Canadia and NYA is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Invesco CurrencyShares Canadia and NYA in the same portfolio, assuming nothing else is changed.

Invesco CurrencyShares Additional Risk Indicators

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

Invesco CurrencyShares 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 Invesco CurrencyShares 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. Invesco CurrencyShares' 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, Invesco CurrencyShares' 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 Invesco CurrencyShares Canadian.
When determining whether Invesco CurrencyShares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Invesco CurrencyShares' 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 Invesco Currencyshares Canadian Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Invesco Currencyshares Canadian Etf:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Invesco CurrencyShares Canadian. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in interest.
You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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