Large Cap Equity Fund Volatility

TLGUX Fund  USD 24.10  0.03  0.12%   
We consider Large Cap very steady. Large Cap Equity has Sharpe Ratio of 0.25, which conveys that the entity had a 0.25% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Large Cap, which you can use to evaluate the volatility of the fund. Please verify Large Cap's Mean Deviation of 0.5005, risk adjusted performance of 0.1318, and Downside Deviation of 0.6049 to check out if the risk estimate we provide is consistent with the expected return of 0.17%. Key indicators related to Large Cap's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Large Cap 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 Large daily returns, and it is calculated using variance and standard deviation. We also use Large's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Large Cap volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Large Cap 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 Large Cap at lower prices. For example, an investor can purchase Large 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 Large Cap'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 Large Mutual Fund

  0.98STFGX State Farm GrowthPairCorr
  0.84MSQLX International EquityPairCorr
  0.78MSPTX Global Advantage PorPairCorr
  0.85MSSOX Global StrategistPairCorr
  0.9MBAAX Global StrategistPairCorr
  0.89MSRFX Frontier Markets PorPairCorr

Moving against Large Mutual Fund

  0.64USGCX Morgan Stanley UsPairCorr

Large Cap Market Sensitivity And Downside Risk

Large Cap's beta coefficient measures the volatility of Large 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 Large mutual fund's returns against your selected market. In other words, Large Cap's beta of 1.01 provides an investor with an approximation of how much risk Large Cap mutual fund can potentially add to one of your existing portfolios. Large Cap Equity exhibits very low volatility with skewness of -0.07 and kurtosis of 0.47. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Large Cap'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 Large Cap'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 Large Cap Equity Demand Trend
Check current 90 days Large Cap correlation with market (NYSE Composite)

Large Beta

    
  1.01  
Large 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

    
  0.66  
It is essential to understand the difference between upside risk (as represented by Large Cap's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Large Cap's daily returns or price. Since the actual investment returns on holding a position in large 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 Large Cap.

Large Cap Equity Mutual Fund Volatility Analysis

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

Historical Volatility

This type of fund volatility measures Large Cap's fluctuations based on previous trends. It's commonly used to predict Large Cap'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 Large Cap'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 Large Cap'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. Large Cap Equity 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.

Large Cap Projected Return Density Against Market

Assuming the 90 days horizon the mutual fund has the beta coefficient of 1.0078 . This usually implies Large Cap Equity market returns are sensitive to returns on the market. As the market goes up or down, Large Cap is expected to follow.
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 Large Cap or Morgan Stanley 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 Large Cap'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 Large 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.
Large Cap Equity has an alpha of 0.0148, implying that it can generate a 0.0148 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Large Cap's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how large mutual fund'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 Large Cap 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.

Large Cap Mutual Fund Risk Measures

Assuming the 90 days horizon the coefficient of variation of Large Cap is 396.77. The daily returns are distributed with a variance of 0.43 and standard deviation of 0.66. The mean deviation of Large Cap Equity is currently at 0.52. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.01
β
Beta against NYSE Composite1.01
σ
Overall volatility
0.66
Ir
Information ratio 0.02

Large Cap Mutual Fund Return Volatility

Large Cap historical daily return volatility represents how much of Large Cap fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.6584% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Large Cap Volatility

Volatility is a rate at which the price of Large Cap 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 Large Cap may increase or decrease. In other words, similar to Large's beta indicator, it measures the risk of Large Cap and helps estimate the fluctuations that may happen in a short period of time. So if prices of Large Cap 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 net assets in the equity securities of large capitalization companies or in other investments with similar economic characteristics. The advisor defines large cap companies as companies whose market capitalizations typically fall within the range of the Russell 1000 Index. The fund may invest up to 10 percent of its assets in the securities of foreign issuers that are not traded on a U.S. exchange or the U.S. over-the-counter market. It may also lend portfolio securities to earn additional income.
Large Cap'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 Large Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Large Cap's price varies over time.

3 ways to utilize Large Cap's volatility to invest better

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

Large Cap Investment Opportunity

Large Cap Equity has a volatility of 0.66 and is 1.16 times more volatile than NYSE Composite. 5 percent of all equities and portfolios are less risky than Large Cap. You can use Large Cap Equity to enhance the returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of Large Cap to be traded at $25.31 in 90 days.

Very poor diversification

The correlation between LARGE CAP EQUITY and NYA is 0.87 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding LARGE CAP EQUITY and NYA in the same portfolio, assuming nothing else is changed.

Large Cap Additional Risk Indicators

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

Large Cap 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 Large Cap 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. Large Cap'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, Large Cap'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 Large Cap Equity.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Large Cap Equity. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Complementary Tools for Large Mutual Fund analysis

When running Large Cap's price analysis, check to measure Large Cap'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 Large Cap is operating at the current time. Most of Large Cap's value examination focuses on studying past and present price action to predict the probability of Large Cap's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Large Cap's price. Additionally, you may evaluate how the addition of Large Cap to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Large Cap's value and its price as these two are different measures arrived at by different means. Investors typically determine if Large Cap is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Large Cap'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.