Vaneck Africa Index Etf Volatility
| AFK Etf | USD 16.13 0.08 0.50% |
As of now, VanEck Etf is very steady. VanEck Africa Index owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0422, which indicates the etf had a 0.0422% return per unit of risk over the last 3 months. We have found twenty-four technical indicators for VanEck Africa Index, which you can use to evaluate the volatility of the etf. Please validate VanEck Africa's Variance of 2.28, coefficient of variation of (10,891), and insignificant Risk Adjusted Performance to confirm if the risk estimate we provide is consistent with the expected return of 0.0602%. Key indicators related to VanEck Africa's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
VanEck Africa 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 VanEck daily returns, and it is calculated using variance and standard deviation. We also use VanEck's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of VanEck Africa volatility.
VanEck |
Downward market volatility can be a perfect environment for investors who play the long game with VanEck Africa. They may decide to buy additional shares of VanEck Africa at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with VanEck Etf
VanEck Africa Market Sensitivity And Downside Risk
VanEck Africa's beta coefficient measures the volatility of VanEck 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 VanEck etf's returns against your selected market. In other words, VanEck Africa's beta of 0.54 provides an investor with an approximation of how much risk VanEck Africa etf can potentially add to one of your existing portfolios. VanEck Africa Index exhibits very low volatility with skewness of -0.21 and kurtosis of 0.52. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure VanEck Africa'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 VanEck Africa'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 VanEck Africa Index Demand TrendCheck current 90 days VanEck Africa correlation with market (Dow Jones Industrial)VanEck Beta |
VanEck 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 | 1.43 |
It is essential to understand the difference between upside risk (as represented by VanEck Africa's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of VanEck Africa's daily returns or price. Since the actual investment returns on holding a position in vaneck 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 VanEck Africa.
VanEck Africa Index Etf Volatility Analysis
Volatility refers to the frequency at which VanEck Africa etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with VanEck Africa's price changes. Investors will then calculate the volatility of VanEck Africa'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 VanEck Africa's volatility:
Historical Volatility
This type of etf volatility measures VanEck Africa's fluctuations based on previous trends. It's commonly used to predict VanEck Africa'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 VanEck Africa'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 VanEck Africa'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. VanEck Africa Index 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.
VanEck Africa Projected Return Density Against Market
Considering the 90-day investment horizon VanEck Africa has a beta of 0.5397 . This suggests as returns on the market go up, VanEck Africa average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding VanEck Africa Index 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 VanEck Africa or VanEck 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 VanEck Africa'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 VanEck 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.
VanEck Africa Index has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a VanEck Africa 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.VanEck Africa Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of VanEck Africa is 2367.29. The daily returns are distributed with a variance of 2.03 and standard deviation of 1.42. The mean deviation of VanEck Africa Index is currently at 1.14. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.09 | |
β | Beta against Dow Jones | 0.54 | |
σ | Overall volatility | 1.43 | |
Ir | Information ratio | -0.1 |
VanEck Africa Etf Return Volatility
VanEck Africa historical daily return volatility represents how much of VanEck Africa etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF venture has volatility of 1.425% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About VanEck Africa Volatility
Volatility is a rate at which the price of VanEck Africa 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 VanEck Africa may increase or decrease. In other words, similar to VanEck's beta indicator, it measures the risk of VanEck Africa and helps estimate the fluctuations that may happen in a short period of time. So if prices of VanEck Africa 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 VanEck Africa's volatility to invest better
Higher VanEck Africa's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of VanEck Africa Index 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. VanEck Africa Index 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 VanEck Africa Index investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in VanEck Africa'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 VanEck Africa's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
VanEck Africa Investment Opportunity
VanEck Africa Index has a volatility of 1.43 and is 1.93 times more volatile than Dow Jones Industrial. 12 percent of all equities and portfolios are less risky than VanEck Africa. You can use VanEck Africa Index to enhance the returns of your portfolios. The etf experiences a moderate upward volatility. Check odds of VanEck Africa to be traded at $17.74 in 90 days.Modest diversification
The correlation between VanEck Africa Index and DJI 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 VanEck Africa Index and DJI in the same portfolio, assuming nothing else is changed.
VanEck Africa Additional Risk Indicators
The analysis of VanEck Africa'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 VanEck Africa's investment and either accepting that risk or mitigating it. Along with some common measures of VanEck Africa 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) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.18 | |||
| Coefficient Of Variation | (10,891) | |||
| Standard Deviation | 1.51 | |||
| Variance | 2.28 | |||
| Information Ratio | (0.10) |
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.
VanEck Africa 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.
| Microsoft vs. VanEck Africa | ||
| Ford vs. VanEck Africa | ||
| GM vs. VanEck Africa | ||
| Visa vs. VanEck Africa | ||
| Dupont De vs. VanEck Africa | ||
| Bank of America vs. VanEck Africa | ||
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 VanEck Africa 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. VanEck Africa'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, VanEck Africa'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 VanEck Africa Index.
When determining whether VanEck Africa Index 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 VanEck 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 Vaneck Africa Index Etf. Highlighted below are key reports to facilitate an investment decision about Vaneck Africa Index Etf: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in VanEck Africa Index. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
The market value of VanEck Africa Index is measured differently than its book value, which is the value of VanEck that is recorded on the company's balance sheet. Investors also form their own opinion of VanEck Africa's value that differs from its market value or its book value, called intrinsic value, which is VanEck Africa'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 VanEck Africa's market value can be influenced by many factors that don't directly affect VanEck Africa'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 VanEck Africa's value and its price as these two are different measures arrived at by different means. Investors typically determine if VanEck Africa is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VanEck Africa'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.