Rydex Series is up 0.13 percent despite modest market slide
 | By Ellen Johnson | Macroaxis Story |
This article is intended for all current Rydex Series investors and for investors considering a position in the fund. I will inspect if investors should continue to be optimistic for the fund outlook. Rydex Series Fds chance of financial distress is under 33.00 % . Assuming 30 trading days horizon, Rydex Series is expected to generate 0.82 times more return on investment than the market. However, the company is 1.22 times less risky than the market. It trades about 0.07 of its potential returns per unit of risk. The market is currently generating roughly 0.03 per unit of risk. What is Rydex Series Target Price Odds to finish over Current Price? Based on normal probability distribution, the odds of Rydex Series to move above current price in 30 days from now is about 6.57%. The Rydex Series Fds Financial Ser probability density function shows the probability of Rydex Series Fund to fall within a particular range of prices over 30 days . Assuming 30 trading days horizon, Rydex Series Fds Financial Ser has beta of -0.0929 . This implies as returns on benchmark increase, returns on holding Rydex Series are expected to decrease at a much smaller rate. During bear market, however, Rydex Series Fds Financial Ser is likely to outperform the market. Additionally, the company has an alpha of 0.0439 implying that it can potentially generate 0.0439% excess return over Russell 2000 after adjusting for the inherited market risk (beta).
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Reviewed by Raphi Shpitalnik
The firm dividends can provide a clue to current valuation of the fund. The entity one year expected dividend income is about $1.05 per share. Let me now go over Rydex Series Price to Book. Based on latest financial disclosure the price to book indicator of Rydex Series Fds Financial Ser is roughly 1.49 times. This is much higher than that of the Rydex Funds family, and significantly higher than that of Financial category, The Price to Book for all funds is notably lower than the firm.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Financial Services. Your research has to be compared to or analyzed against Financial Services' peers to derive any actionable benefits. When done correctly, Financial Services' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Financial Services.
Investing in Financial Services, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Financial Services along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Financial Services' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Instrument Allocation
The asset allocation of funds such as Financial Services usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Financial Services Fund
DetailsBreaking down Financial Services Indicators
The current investor indifference towards the small price fluctuations of Rydex Series Fds has created some momentum for investors as it was traded today as low as 67.83 and as high as 67.83 per share. The fund managers did not add any value to Rydex Series investors in August. However, most investors can still diversify their portfolios with Rydex Series Fds to hedge your portfolio against high-volatility market scenarios. The fund standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.9555. The very small Fund volatility is a good signal to investors with longer term investment horizons. Rydex Series reports 99.18% equity positions weight. Rydex Series is selling for 67.83. This is 0.13 percent up. Started trading at 67.83. All in all, our present buy-hold-sell recommendation on the fund is Hold. We believe Rydex Series is fairly valued with below average probability of bankruptcy for the next two years.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Financial Services Fund. Please refer to our Terms of Use for any information regarding our disclosure principles.