Natural Gas Commodity Performance
| NGUSD Commodity | 3.40 0.27 8.63% |
The commodity secures a Beta (Market Risk) of -0.88, which conveys possible diversification benefits within a given portfolio. As the market becomes more bullish, returns on owning Natural Gas are expected to decrease slowly. On the other hand, during market turmoil, Natural Gas is expected to outperform it slightly.
Risk-Adjusted Performance
15 of 100
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Compared to the overall equity markets, risk-adjusted returns on investments in Natural Gas are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Natural Gas exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
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Natural Gas Relative Risk vs. Return Landscape
If you would invest 193.00 in Natural Gas on August 28, 2024 and sell it today you would earn a total of 147.00 from holding Natural Gas or generate 76.17% return on investment over 90 days. Natural Gas is currently producing 1.0053% returns and takes up 4.99% volatility of returns over 90 trading days. Put another way, 44% of traded commoditys are less volatile than Natural, and 80% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
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Natural Gas Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Natural Gas' investment risk. Standard deviation is the most common way to measure market volatility of commoditys, such as Natural Gas, and traders can use it to determine the average amount a Natural Gas' 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 = 0.2015
| Best Portfolio | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 4.99 actual daily | 44 56% of assets are more volatile |
Expected Return
| 1.01 actual daily | 20 80% of assets have higher returns |
Risk-Adjusted Return
| 0.2 actual daily | 15 85% of assets perform better |
Based on monthly moving average Natural Gas is performing at about 15% of its full potential. 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 Natural Gas by adding it to a well-diversified portfolio.
| Natural Gas appears to be risky and price may revert if volatility continues |