Roundhill Baba Weeklypay Etf Volatility
| BABW Etf | 46.59 0.98 2.15% |
At this stage we consider Roundhill Etf to be very steady. Roundhill BABA WeeklyPay maintains Sharpe Ratio (i.e., Efficiency) of 0.0276, which implies the entity had a 0.0276 % return per unit of risk over the last 3 months. We have found thirty technical indicators for Roundhill BABA WeeklyPay, which you can use to evaluate the volatility of the etf. Please check Roundhill BABA's Coefficient Of Variation of 3625.02, risk adjusted performance of 0.0278, and Semi Deviation of 2.43 to confirm if the risk estimate we provide is consistent with the expected return of 0.089%.
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Roundhill BABA 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 Roundhill daily returns, and it is calculated using variance and standard deviation. We also use Roundhill's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Roundhill BABA volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Roundhill BABA. They may decide to buy additional shares of Roundhill BABA at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
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Roundhill BABA Market Sensitivity And Downside Risk
Roundhill BABA's beta coefficient measures the volatility of Roundhill 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 Roundhill etf's returns against your selected market. In other words, Roundhill BABA's beta of 0.35 provides an investor with an approximation of how much risk Roundhill BABA etf can potentially add to one of your existing portfolios. Roundhill BABA WeeklyPay currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Roundhill BABA'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 Roundhill BABA'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 Roundhill BABA WeeklyPay Demand TrendCheck current 90 days Roundhill BABA correlation with market (Dow Jones Industrial)Roundhill BABA Volatility and Downside Risk
Roundhill 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.
Roundhill BABA WeeklyPay Etf Volatility Analysis
Volatility refers to the frequency at which Roundhill BABA etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Roundhill BABA's price changes. Investors will then calculate the volatility of Roundhill BABA'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 Roundhill BABA's volatility:
Historical Volatility
This type of etf volatility measures Roundhill BABA's fluctuations based on previous trends. It's commonly used to predict Roundhill BABA'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 Roundhill BABA'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 Roundhill BABA'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. Roundhill BABA WeeklyPay 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.
Roundhill BABA Projected Return Density Against Market
Given the investment horizon of 90 days Roundhill BABA has a beta of 0.3516 suggesting as returns on the market go up, Roundhill BABA average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Roundhill BABA WeeklyPay 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 Roundhill BABA or Roundhill 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 Roundhill BABA'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 Roundhill 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.
Roundhill BABA WeeklyPay has an alpha of 0.0609, implying that it can generate a 0.0609 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Roundhill BABA 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.Roundhill BABA Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Roundhill BABA is 3625.02. The daily returns are distributed with a variance of 10.4 and standard deviation of 3.22. The mean deviation of Roundhill BABA WeeklyPay is currently at 2.31. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.35 | |
σ | Overall volatility | 3.22 | |
Ir | Information ratio | 0.01 |
Roundhill BABA Etf Return Volatility
Roundhill BABA historical daily return volatility represents how much of Roundhill BABA etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund inherits 3.2249% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7486% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Roundhill BABA Competition Risk-Adjusted Indicators
There is a big difference between Roundhill Etf performing well and Roundhill BABA ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Roundhill BABA's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.49 | 0.17 | 0.12 | 0.22 | 1.28 | 3.43 | 6.38 | |||
| MSFT | 1.24 | (0.29) | 0.00 | (1.12) | 0.00 | 1.85 | 4.90 | |||
| UBER | 1.50 | (0.30) | 0.00 | (0.34) | 0.00 | 2.46 | 10.23 | |||
| F | 1.25 | 0.05 | 0.04 | 0.09 | 1.22 | 3.38 | 7.16 | |||
| T | 0.82 | (0.05) | 0.00 | (0.10) | 0.00 | 1.43 | 3.77 | |||
| A | 1.20 | (0.22) | 0.00 | (0.11) | 0.00 | 2.90 | 7.85 | |||
| CRM | 1.58 | (0.36) | 0.00 | (0.30) | 0.00 | 2.94 | 12.37 | |||
| JPM | 1.11 | 0.04 | (0.01) | (0.50) | 1.66 | 2.00 | 7.38 | |||
| MRK | 1.26 | 0.30 | 0.21 | 0.47 | 1.14 | 3.59 | 8.09 | |||
| XOM | 1.06 | 0.24 | 0.18 | 0.45 | 0.96 | 2.38 | 5.82 |
About Roundhill BABA Volatility
Volatility is a rate at which the price of Roundhill BABA 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 Roundhill BABA may increase or decrease. In other words, similar to Roundhill's beta indicator, it measures the risk of Roundhill BABA and helps estimate the fluctuations that may happen in a short period of time. So if prices of Roundhill BABA 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.3 ways to utilize Roundhill BABA's volatility to invest better
Higher Roundhill BABA's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Roundhill BABA WeeklyPay 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. Roundhill BABA WeeklyPay 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 Roundhill BABA WeeklyPay investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Roundhill BABA'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 Roundhill BABA's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Roundhill BABA Investment Opportunity
Roundhill BABA WeeklyPay has a volatility of 3.22 and is 4.29 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Roundhill BABA WeeklyPay is lower than 28 percent of all global equities and portfolios over the last 90 days. You can use Roundhill BABA WeeklyPay to enhance the returns of your portfolios. The etf experiences an unexpected upward trend. Watch out for market signals. Check odds of Roundhill BABA to be traded at 55.91 in 90 days.Significant diversification
The correlation between Roundhill BABA WeeklyPay and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill BABA WeeklyPay and DJI in the same portfolio, assuming nothing else is changed.
Roundhill BABA Additional Risk Indicators
The analysis of Roundhill BABA'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 Roundhill BABA's investment and either accepting that risk or mitigating it. Along with some common measures of Roundhill BABA 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 | 0.0278 | |||
| Market Risk Adjusted Performance | 0.2346 | |||
| Mean Deviation | 2.31 | |||
| Semi Deviation | 2.43 | |||
| Downside Deviation | 2.57 | |||
| Coefficient Of Variation | 3625.02 | |||
| Standard Deviation | 3.22 |
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.
Roundhill BABA 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 Roundhill BABA 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. Roundhill BABA'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, Roundhill BABA'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 Roundhill BABA WeeklyPay.
When determining whether Roundhill BABA WeeklyPay is a strong investment it is important to analyze Roundhill BABA's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Roundhill BABA's future performance. For an informed investment choice regarding Roundhill Etf, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Roundhill BABA WeeklyPay. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Roundhill BABA WeeklyPay's market price often diverges from its book value, the accounting figure shown on Roundhill's balance sheet. Smart investors calculate Roundhill BABA's intrinsic value—its true economic worth—which may differ significantly from both market price and book value. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. Since Roundhill BABA's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Roundhill BABA's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Roundhill BABA should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Roundhill BABA'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.