Focused Dynamic Growth Fund Volatility
| ACFOX Fund | USD 68.29 0.14 0.21% |
At this stage we consider Focused Mutual Fund to be very steady. Focused Dynamic Growth secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the fund had a 0.15% return per unit of standard deviation over the last 3 months. We have found twenty-eight technical indicators for Focused Dynamic Growth, which you can use to evaluate the volatility of the entity. Please confirm Focused Dynamic's Mean Deviation of 0.9332, semi deviation of 1.24, and Downside Deviation of 1.48 to check if the risk estimate we provide is consistent with the expected return of 0.19%. Key indicators related to Focused Dynamic's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Focused Dynamic Mutual Fund 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 Focused daily returns, and it is calculated using variance and standard deviation. We also use Focused's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Focused Dynamic volatility.
Focused |
Downward market volatility can be a perfect environment for investors who play the long game with Focused Dynamic. They may decide to buy additional shares of Focused Dynamic at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Focused Mutual Fund
| 0.81 | AMDVX | Mid Cap Value | PairCorr |
| 0.97 | AMEIX | Equity Growth | PairCorr |
| 0.92 | AMGIX | Income Growth | PairCorr |
| 0.87 | TWADX | Value Fund A | PairCorr |
| 0.97 | TWCCX | Ultra Fund C | PairCorr |
| 0.95 | TWCAX | Select Fund A | PairCorr |
Moving against Focused Mutual Fund
| 0.82 | CDBCX | Diversified Bond | PairCorr |
| 0.69 | TWACX | Short Term Government | PairCorr |
| 0.65 | TWGAX | International Growth | PairCorr |
| 0.65 | TWIEX | International Growth | PairCorr |
| 0.64 | TWARX | Short Term Government | PairCorr |
| 0.63 | TWAVX | Short Term Government | PairCorr |
| 0.54 | TWTCX | Intermediate Term Tax | PairCorr |
| 0.42 | TWTIX | Intermediate Term Tax | PairCorr |
Focused Dynamic Market Sensitivity And Downside Risk
Focused Dynamic's beta coefficient measures the volatility of Focused mutual fund 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 Focused mutual fund's returns against your selected market. In other words, Focused Dynamic's beta of 1.12 provides an investor with an approximation of how much risk Focused Dynamic mutual fund can potentially add to one of your existing portfolios. Focused Dynamic Growth has relatively low volatility with skewness of -0.37 and kurtosis of 1.52. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Focused Dynamic's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Focused Dynamic's mutual fund 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 Focused Dynamic Growth Demand TrendCheck current 90 days Focused Dynamic correlation with market (Dow Jones Industrial)Focused Beta |
Focused 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 | 1.3 |
It is essential to understand the difference between upside risk (as represented by Focused Dynamic's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Focused Dynamic's daily returns or price. Since the actual investment returns on holding a position in focused mutual fund 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 Focused Dynamic.
Focused Dynamic Growth Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Focused Dynamic fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Focused Dynamic's price changes. Investors will then calculate the volatility of Focused Dynamic's mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual fund with relatively stable price changes has low volatility. A highly volatile fund 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 Focused Dynamic's volatility:
Historical Volatility
This type of fund volatility measures Focused Dynamic's fluctuations based on previous trends. It's commonly used to predict Focused Dynamic's future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Focused Dynamic's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Focused Dynamic'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. Focused Dynamic Growth 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.
Focused Dynamic Projected Return Density Against Market
Assuming the 90 days horizon the mutual fund has the beta coefficient of 1.1225 . This suggests Focused Dynamic Growth market returns are sensitive to returns on the market. As the market goes up or down, Focused Dynamic is expected to follow.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 Focused Dynamic or American Century Investments 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 Focused Dynamic's price will be affected by overall mutual fund 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 Focused fund'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.
Focused Dynamic Growth has an alpha of 0.0574, implying that it can generate a 0.0574 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Focused Dynamic Price Volatility?
Several factors can influence a fund'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.Focused Dynamic Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Focused Dynamic is 670.7. The daily returns are distributed with a variance of 1.69 and standard deviation of 1.3. The mean deviation of Focused Dynamic Growth is currently at 0.91. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 1.12 | |
σ | Overall volatility | 1.30 | |
Ir | Information ratio | 0.06 |
Focused Dynamic Mutual Fund Return Volatility
Focused Dynamic historical daily return volatility represents how much of Focused Dynamic fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 1.3019% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Focused Dynamic Volatility
Volatility is a rate at which the price of Focused Dynamic 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 Focused Dynamic may increase or decrease. In other words, similar to Focused's beta indicator, it measures the risk of Focused Dynamic and helps estimate the fluctuations that may happen in a short period of time. So if prices of Focused Dynamic 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.The portfolio managers look for stocks of early and rapid stage growth companies they believe will increase in value over time. The portfolio managers make their investment decisions based primarily on their analysis of individual companies, rather than on broad economic forecasts. The portfolio managers use a variety of analytical research tools and techniques to identify the stocks of companies that meet their investment criteria. Under normal market conditions, the portfolio managers seek securities of companies whose earnings or revenues are not only growing, but growing at an accelerated pace.
Focused Dynamic's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Focused Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Focused Dynamic's price varies over time.
3 ways to utilize Focused Dynamic's volatility to invest better
Higher Focused Dynamic's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Focused Dynamic Growth fund 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. Focused Dynamic Growth fund 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 Focused Dynamic Growth investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Focused Dynamic's fund 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 Focused Dynamic's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Focused Dynamic Investment Opportunity
Focused Dynamic Growth has a volatility of 1.3 and is 1.71 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than Focused Dynamic. You can use Focused Dynamic Growth to enhance the returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of Focused Dynamic to be traded at $71.7 in 90 days.Poor diversification
The correlation between Focused Dynamic Growth and DJI is 0.66 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Focused Dynamic Growth and DJI in the same portfolio, assuming nothing else is changed.
Focused Dynamic Additional Risk Indicators
The analysis of Focused Dynamic'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 Focused Dynamic's investment and either accepting that risk or mitigating it. Along with some common measures of Focused Dynamic mutual fund'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 | 0.123 | |||
| Market Risk Adjusted Performance | 0.1819 | |||
| Mean Deviation | 0.9332 | |||
| Semi Deviation | 1.24 | |||
| Downside Deviation | 1.48 | |||
| Coefficient Of Variation | 645.08 | |||
| Standard Deviation | 1.31 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Focused Dynamic 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 Focused Dynamic 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. Focused Dynamic'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, Focused Dynamic'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 Focused Dynamic Growth.
Other Information on Investing in Focused Mutual Fund
Focused Dynamic financial ratios help investors to determine whether Focused Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Focused with respect to the benefits of owning Focused Dynamic security.
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