Is Rydex Precious getting out of control?
 | By Ellen Johnson | Macroaxis Story |
In this post I will go over different drivers effecting Rydex Precious Metals products and services and how it may effect the entity investors. What is Rydex Precious Target Price Odds to finish over Current Price? Based on normal probability distribution, the odds of Rydex Precious to move above current price in 30 days from now is roughly 2.92%. The Rydex Precious Metals H probability density function shows the probability of Rydex Precious Fund to fall within a particular range of prices over 30 days . Assuming 30 trading days horizon, Rydex Precious has beta of 0.0015 . This implies as returns on market go up, Rydex Precious average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Rydex Precious Metals H will be expected to be much smaller as well. Additionally, the company has an alpha of 0.415 implying that it can potentially generate 0.415% excess return over S&P 500 after adjusting for the inherited market risk (beta).
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Reviewed by Rifka Kats
I believe the fund is undervalued at 26.69 per share with modest projections ahead. The fund holds Beta of 0.0015 which implies as returns on market increase, Rydex Precious returns are expected to increase less than the market. However during bear market, the loss on holding Rydex Precious will be expected to be smaller as well. Although it is vital to follow to Rydex Precious Metals current trending patterns, it is good to be conservative about what you can actually do with the information regarding equity existing price patterns. The philosophy towards forecasting future performance of any fund is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By analyzing Rydex Precious Metals technical indicators you can presently evaluate if the expected return of 0.3172% will be sustainable into the future. The performance of Precious Metals Fund in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Precious Metals' stock prices. When investing in Precious Metals, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Precious Mutual Fund can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Precious Metals carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
Instrument Allocation
The asset allocation of funds such as Precious Metals 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 Precious Metals Fund
DetailsGoing after Precious Financials
Roughly 100.0 pct. of Rydex Precious outstanding shares are held by regular investors with 0.0 % owned by insiders and only 0.0 (%) by third-party entities. The latest increase in of Rydex Precious short term price appreciation has created some momentum for investors as it was traded today as low as 24.9 and as high as 24.9 per share. The fund managers have been quite successful with maneuvering the fund at opportune times to take advantage of all market conditions in January. The fund standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.4337. The below-average Fund volatility is a good sign for a longer term investment options and for buy-and-hold investors. Rydex Precious defends 11.79% ten year return. Rydex Precious is selling for under 24.90. Today lowest is 24.9. All in all, we believe that at this point Rydex Precious is undervalued with very small probability of distress within the next 2 years. Our final buy/sell advice on the fund is Strong Buy.
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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 Precious Metals Fund. Please refer to our Terms of Use for any information regarding our disclosure principles.