Vanguard Health Care Etf Volatility
| VHT Etf | USD 255.32 0.08 0.03% |
Vanguard Health Care owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.006, which indicates the etf had a -0.006% return per unit of risk over the last 3 months. Vanguard Health Care exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Vanguard Health's Semi Deviation of 0.6463, risk adjusted performance of 0.0155, and Coefficient Of Variation of 4250.51 to confirm the risk estimate we provide. Key indicators related to Vanguard Health's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Vanguard Health 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 Vanguard daily returns, and it is calculated using variance and standard deviation. We also use Vanguard's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vanguard Health volatility.
Vanguard |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vanguard Health 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 Vanguard Health at lower prices. For example, an investor can purchase Vanguard 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 Vanguard Health'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 Vanguard Etf
| 0.97 | XLV | Health Care Select | PairCorr |
| 0.77 | IBB | iShares Biotechnology ETF | PairCorr |
| 0.84 | XBI | SPDR SP Biotech | PairCorr |
| 0.88 | IHI | iShares Medical Devices | PairCorr |
| 0.95 | IXJ | iShares Global Healthcare | PairCorr |
| 0.97 | IYH | iShares Healthcare ETF | PairCorr |
| 0.97 | FHLC | Fidelity MSCI Health | PairCorr |
| 0.64 | ARKG | ARK Genomic Revolution | PairCorr |
Vanguard Health Market Sensitivity And Downside Risk
Vanguard Health's beta coefficient measures the volatility of Vanguard 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 Vanguard etf's returns against your selected market. In other words, Vanguard Health's beta of 0.29 provides an investor with an approximation of how much risk Vanguard Health etf can potentially add to one of your existing portfolios. Vanguard Health Care exhibits relatively low volatility with skewness of -0.13 and kurtosis of 0.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vanguard Health'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 Vanguard Health'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 Vanguard Health Care Demand TrendCheck current 90 days Vanguard Health correlation with market (NYSE Composite)Vanguard Beta |
Vanguard 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 | 0.67 |
It is essential to understand the difference between upside risk (as represented by Vanguard Health's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vanguard Health's daily returns or price. Since the actual investment returns on holding a position in vanguard 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 Vanguard Health.
Using Vanguard Put Option to Manage Risk
Put options written on Vanguard Health grant holders of the option the right to sell a specified amount of Vanguard Health 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 Vanguard Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Vanguard Health'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 Vanguard Health will be realized, the loss incurred will be offset by the profits made with the option trade.
Vanguard Health's PUT expiring on 2024-05-17
Profit |
| Vanguard Health Price At Expiration |
Current Vanguard Health Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $270.0 | -0.7808 | 0.0171 | 3 | 2024-05-17 | 12.6 - 16.5 | 8.13 | View |
Put | 2024-05-17 PUT at $265.0 | -0.8644 | 0.0261 | 7 | 2024-05-17 | 8.1 - 12.0 | 10.6 | View |
Put | 2024-05-17 PUT at $260.0 | -0.7865 | 0.0523 | 28 | 2024-05-17 | 3.9 - 6.4 | 7.47 | View |
Put | 2024-05-17 PUT at $255.0 | -0.4587 | 0.0569 | 6 | 2024-05-17 | 2.05 - 2.85 | 2.48 | View |
Put | 2024-05-17 PUT at $250.0 | -0.2321 | 0.0382 | 25 | 2024-05-17 | 0.75 - 1.75 | 1.1 | View |
Put | 2024-05-17 PUT at $245.0 | -0.1522 | 0.0217 | 9 | 2024-05-17 | 0.25 - 1.5 | 0.7 | View |
Put | 2024-05-17 PUT at $240.0 | -0.0875 | 0.0131 | 16 | 2024-05-17 | 0.15 - 0.85 | 0.6 | View |
Vanguard Health Care Etf Volatility Analysis
Volatility refers to the frequency at which Vanguard Health etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vanguard Health's price changes. Investors will then calculate the volatility of Vanguard Health'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 Vanguard Health's volatility:
Historical Volatility
This type of etf volatility measures Vanguard Health's fluctuations based on previous trends. It's commonly used to predict Vanguard Health'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 Vanguard Health'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 Vanguard Health'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. Vanguard Health Care 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.
Vanguard Health Projected Return Density Against Market
Considering the 90-day investment horizon Vanguard Health has a beta of 0.2913 . This entails as returns on the market go up, Vanguard Health average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Vanguard Health Care 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 Vanguard Health or Vanguard 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 Vanguard Health'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 Vanguard 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.
Vanguard Health Care has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Vanguard Health 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.Vanguard Health Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Vanguard Health is -16804.26. The daily returns are distributed with a variance of 0.45 and standard deviation of 0.67. The mean deviation of Vanguard Health Care is currently at 0.5. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.02 | |
β | Beta against NYSE Composite | 0.29 | |
σ | Overall volatility | 0.67 | |
Ir | Information ratio | -0.11 |
Vanguard Health Etf Return Volatility
Vanguard Health historical daily return volatility represents how much of Vanguard Health etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The exchange-traded fund has volatility of 0.6742% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.625% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vanguard Health Volatility
Volatility is a rate at which the price of Vanguard Health 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 Vanguard Health may increase or decrease. In other words, similar to Vanguard's beta indicator, it measures the risk of Vanguard Health and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vanguard Health 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 employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index Health Care 2550, an index made up of stocks of large, mid-size, and small U.S. companies within the health care sector, as classified under the Global Industry Classification Standard . Healthcare ETF is traded on NYSEARCA Exchange in the United States.
Vanguard Health'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 Vanguard Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vanguard Health's price varies over time.
3 ways to utilize Vanguard Health's volatility to invest better
Higher Vanguard Health's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vanguard Health Care 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. Vanguard Health Care 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 Vanguard Health Care investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vanguard Health'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 Vanguard Health's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vanguard Health Investment Opportunity
Vanguard Health Care has a volatility of 0.67 and is 1.06 times more volatile than NYSE Composite. 5 percent of all equities and portfolios are less risky than Vanguard Health. You can use Vanguard Health Care to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of Vanguard Health to be traded at $268.09 in 90 days.Modest diversification
The correlation between Vanguard Health Care and NYA is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Health Care and NYA in the same portfolio, assuming nothing else is changed.
Vanguard Health Additional Risk Indicators
The analysis of Vanguard Health'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 Vanguard Health's investment and either accepting that risk or mitigating it. Along with some common measures of Vanguard Health 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.
| Risk Adjusted Performance | 0.0155 | |||
| Market Risk Adjusted Performance | 0.0306 | |||
| Mean Deviation | 0.5171 | |||
| Semi Deviation | 0.6463 | |||
| Downside Deviation | 0.7014 | |||
| Coefficient Of Variation | 4250.51 | |||
| Standard Deviation | 0.6795 |
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.
Vanguard Health 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.
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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 Vanguard Health 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. Vanguard Health'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, Vanguard Health'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 Vanguard Health Care.
When determining whether Vanguard Health Care is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Vanguard Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Vanguard Health Care Etf. Highlighted below are key reports to facilitate an investment decision about Vanguard Health Care Etf: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard Health Care. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the Vanguard Health Care information on this page should be used as a complementary analysis to other Vanguard Health'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
The market value of Vanguard Health Care is measured differently than its book value, which is the value of Vanguard that is recorded on the company's balance sheet. Investors also form their own opinion of Vanguard Health's value that differs from its market value or its book value, called intrinsic value, which is Vanguard Health'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 Vanguard Health's market value can be influenced by many factors that don't directly affect Vanguard Health'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 Vanguard Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vanguard Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vanguard Health'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.