Stkd Bitcoin Gold Etf Volatility
| BTGD Etf | 28.06 1.67 6.33% |
STKD Bitcoin appears to be not too volatile, given 3 months investment horizon. STKD Bitcoin Gold owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.25, which indicates the etf had a 0.25% return per unit of volatility over the last 3 months. By evaluating STKD Bitcoin's technical indicators, you can evaluate if the expected return of 0.91% is justified by implied risk. Please review STKD Bitcoin's risk adjusted performance of 0.1989, and Coefficient Of Variation of 401.36 to confirm if our risk estimates are consistent with your expectations. Key indicators related to STKD Bitcoin's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
STKD Bitcoin 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 STKD daily returns, and it is calculated using variance and standard deviation. We also use STKD's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of STKD Bitcoin volatility.
STKD |
Downward market volatility can be a perfect environment for investors who play the long game with STKD Bitcoin. They may decide to buy additional shares of STKD Bitcoin at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
STKD Bitcoin Market Sensitivity And Downside Risk
STKD Bitcoin's beta coefficient measures the volatility of STKD 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 STKD etf's returns against your selected market. In other words, STKD Bitcoin's beta of -0.0694 provides an investor with an approximation of how much risk STKD Bitcoin etf can potentially add to one of your existing portfolios. STKD Bitcoin Gold shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure STKD Bitcoin'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 STKD Bitcoin'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 STKD Bitcoin Gold Demand TrendCheck current 90 days STKD Bitcoin correlation with market (Dow Jones Industrial)STKD Beta |
STKD 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 | 3.71 |
It is essential to understand the difference between upside risk (as represented by STKD Bitcoin's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of STKD Bitcoin's daily returns or price. Since the actual investment returns on holding a position in stkd 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 STKD Bitcoin.
STKD Bitcoin Gold Etf Volatility Analysis
Volatility refers to the frequency at which STKD Bitcoin etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with STKD Bitcoin's price changes. Investors will then calculate the volatility of STKD Bitcoin'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 STKD Bitcoin's volatility:
Historical Volatility
This type of etf volatility measures STKD Bitcoin's fluctuations based on previous trends. It's commonly used to predict STKD Bitcoin'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 STKD Bitcoin'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 STKD Bitcoin'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 thirty-one. STKD Bitcoin Gold 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.
STKD Bitcoin Projected Return Density Against Market
Given the investment horizon of 90 days STKD Bitcoin Gold has a beta of -0.0694 suggesting as returns on the benchmark increase, returns on holding STKD Bitcoin are expected to decrease at a much lower rate. During a bear market, however, STKD Bitcoin Gold is likely to outperform the market.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 STKD Bitcoin or Digital Assets 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 STKD Bitcoin'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 STKD 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.
STKD Bitcoin Gold has an alpha of 0.9376, implying that it can generate a 0.94 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a STKD Bitcoin 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.STKD Bitcoin Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of STKD Bitcoin is 408.19. The daily returns are distributed with a variance of 13.78 and standard deviation of 3.71. The mean deviation of STKD Bitcoin Gold is currently at 2.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.94 | |
β | Beta against Dow Jones | -0.07 | |
σ | Overall volatility | 3.71 | |
Ir | Information ratio | 0.22 |
STKD Bitcoin Etf Return Volatility
STKD Bitcoin historical daily return volatility represents how much of STKD Bitcoin etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund inherits 3.7116% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About STKD Bitcoin Volatility
Volatility is a rate at which the price of STKD Bitcoin 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 STKD Bitcoin may increase or decrease. In other words, similar to STKD's beta indicator, it measures the risk of STKD Bitcoin and helps estimate the fluctuations that may happen in a short period of time. So if prices of STKD Bitcoin 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 STKD Bitcoin's volatility to invest better
Higher STKD Bitcoin's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of STKD Bitcoin Gold 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. STKD Bitcoin Gold 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 STKD Bitcoin Gold investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in STKD Bitcoin'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 STKD Bitcoin's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
STKD Bitcoin Investment Opportunity
STKD Bitcoin Gold has a volatility of 3.71 and is 4.76 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of STKD Bitcoin Gold is lower than 33 percent of all global equities and portfolios over the last 90 days. You can use STKD Bitcoin Gold to enhance the returns of your portfolios. The etf experiences a very speculative upward sentiment. Check odds of STKD Bitcoin to be traded at 35.07 in 90 days.Good diversification
The correlation between STKD Bitcoin Gold and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding STKD Bitcoin Gold and DJI in the same portfolio, assuming nothing else is changed.
STKD Bitcoin Additional Risk Indicators
The analysis of STKD Bitcoin'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 STKD Bitcoin's investment and either accepting that risk or mitigating it. Along with some common measures of STKD Bitcoin 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 | 0.1989 | |||
| Market Risk Adjusted Performance | (13.38) | |||
| Mean Deviation | 3.02 | |||
| Semi Deviation | 2.8 | |||
| Downside Deviation | 3.21 | |||
| Coefficient Of Variation | 401.36 | |||
| Standard Deviation | 3.77 |
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.
STKD Bitcoin 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 STKD Bitcoin 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. STKD Bitcoin'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, STKD Bitcoin'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 STKD Bitcoin Gold.
When determining whether STKD Bitcoin Gold is a strong investment it is important to analyze STKD Bitcoin'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 STKD Bitcoin's future performance. For an informed investment choice regarding STKD Etf, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in STKD Bitcoin Gold. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
The market value of STKD Bitcoin Gold is measured differently than its book value, which is the value of STKD that is recorded on the company's balance sheet. Investors also form their own opinion of STKD Bitcoin's value that differs from its market value or its book value, called intrinsic value, which is STKD Bitcoin'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 STKD Bitcoin's market value can be influenced by many factors that don't directly affect STKD Bitcoin'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 STKD Bitcoin's value and its price as these two are different measures arrived at by different means. Investors typically determine if STKD Bitcoin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, STKD Bitcoin'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.