Lumber Futures Commodity Performance
| LBUSD Commodity | 585.50 41.50 7.63% |
The commodity secures a Beta (Market Risk) of -0.26, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Lumber Futures are expected to decrease at a much lower rate. During the bear market, Lumber Futures is likely to outperform the market.
Risk-Adjusted Performance
Weakest
Weak | Strong |
Over the last 90 days Lumber Futures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Commodity's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Lumber Futures shareholders. ...more
Lumber |
Lumber Futures Relative Risk vs. Return Landscape
If you would invest 65,350 in Lumber Futures on August 7, 2025 and sell it today you would lose (6,800) from holding Lumber Futures or give up 10.41% of portfolio value over 90 days. Lumber Futures is currently producing negative expected returns and takes up 2.0527% volatility of returns over 90 trading days. Put another way, 18% of traded commoditys are less volatile than Lumber, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Lumber Futures Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lumber Futures' investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Lumber Futures, and traders can use it to determine the average amount a Lumber Futures' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0736
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| Negative Returns | LBUSD |
Estimated Market Risk
| 2.05 actual daily | 18 82% of assets are more volatile |
Expected Return
| -0.15 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.07 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Lumber Futures is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Lumber Futures by adding Lumber Futures to a well-diversified portfolio.
| Lumber Futures generated a negative expected return over the last 90 days |