21Shares Tezos (Switzerland) Volatility
| AXTZ Etf | USD 7.66 0.41 5.66% |
21Shares Tezos is relatively risky given 3 months investment horizon. 21Shares Tezos staking secures Sharpe Ratio (or Efficiency) of 0.21, which signifies that the etf had a 0.21% return per unit of risk over the last 3 months. We are able to interpolate and break down twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.29% are justified by taking the suggested risk. Use 21Shares Tezos mean deviation of 3.66, and Coefficient Of Variation of 499.46 to evaluate company specific risk that cannot be diversified away.
21Shares |
21Shares Tezos 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 21Shares daily returns, and it is calculated using variance and standard deviation. We also use 21Shares's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 21Shares Tezos volatility.
Downward market volatility can be a perfect environment for investors who play the long game with 21Shares Tezos. They may decide to buy additional shares of 21Shares Tezos at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with 21Shares Etf
Moving against 21Shares Etf
| 0.61 | XSMI | Xtrackers Switzerland | PairCorr |
| 0.47 | LYINR | Lyxor MSCI India | PairCorr |
| 0.44 | MSE | Lyxor UCITS Stoxx | PairCorr |
| 0.32 | EIMI | iShares Core MSCI | PairCorr |
21Shares Tezos Market Sensitivity And Downside Risk
21Shares Tezos' beta coefficient measures the volatility of 21Shares 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 21Shares etf's returns against your selected market. In other words, 21Shares Tezos's beta of 0.0409 provides an investor with an approximation of how much risk 21Shares Tezos etf can potentially add to one of your existing portfolios. 21Shares Tezos staking is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 21Shares Tezos' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact 21Shares Tezos' 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 21Shares Tezos staking Demand TrendCheck current 90 days 21Shares Tezos correlation with market (Dow Jones Industrial)21Shares Beta |
21Shares 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 | 6.19 |
It is essential to understand the difference between upside risk (as represented by 21Shares Tezos's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of 21Shares Tezos' daily returns or price. Since the actual investment returns on holding a position in 21shares 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 21Shares Tezos.
21Shares Tezos staking Etf Volatility Analysis
Volatility refers to the frequency at which 21Shares Tezos etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 21Shares Tezos' price changes. Investors will then calculate the volatility of 21Shares Tezos' 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 21Shares Tezos' volatility:
Historical Volatility
This type of etf volatility measures 21Shares Tezos' fluctuations based on previous trends. It's commonly used to predict 21Shares Tezos' 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 21Shares Tezos' 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 21Shares Tezos' 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. 21Shares Tezos staking 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.
21Shares Tezos Projected Return Density Against Market
Assuming the 90 days trading horizon 21Shares Tezos has a beta of 0.0409 . This suggests as returns on the market go up, 21Shares Tezos average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding 21Shares Tezos staking 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 21Shares Tezos or 21Shares AG 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 21Shares Tezos' 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 21Shares 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.
21Shares Tezos staking has an alpha of 1.2177, implying that it can generate a 1.22 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a 21Shares Tezos 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.21Shares Tezos Etf Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of 21Shares Tezos is 480.6. The daily returns are distributed with a variance of 38.35 and standard deviation of 6.19. The mean deviation of 21Shares Tezos staking is currently at 3.67. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 1.22 | |
β | Beta against Dow Jones | 0.04 | |
σ | Overall volatility | 6.19 | |
Ir | Information ratio | 0.18 |
21Shares Tezos Etf Return Volatility
21Shares Tezos historical daily return volatility represents how much of 21Shares Tezos etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund accepts 6.193% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About 21Shares Tezos Volatility
Volatility is a rate at which the price of 21Shares Tezos 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 21Shares Tezos may increase or decrease. In other words, similar to 21Shares's beta indicator, it measures the risk of 21Shares Tezos and helps estimate the fluctuations that may happen in a short period of time. So if prices of 21Shares Tezos 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 21Shares Tezos' volatility to invest better
Higher 21Shares Tezos' etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of 21Shares Tezos staking 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. 21Shares Tezos staking 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 21Shares Tezos staking investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in 21Shares Tezos' 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 21Shares Tezos' etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
21Shares Tezos Investment Opportunity
21Shares Tezos staking has a volatility of 6.19 and is 8.36 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of 21Shares Tezos staking is higher than 55 percent of all global equities and portfolios over the last 90 days. You can use 21Shares Tezos staking to enhance the returns of your portfolios. The etf experiences a very speculative upward sentiment. Check odds of 21Shares Tezos to be traded at $9.57 in 90 days.Significant diversification
The correlation between 21Shares Tezos staking 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 21Shares Tezos staking and DJI in the same portfolio, assuming nothing else is changed.
21Shares Tezos Additional Risk Indicators
The analysis of 21Shares Tezos' 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 21Shares Tezos' investment and either accepting that risk or mitigating it. Along with some common measures of 21Shares Tezos 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 | 0.1618 | |||
| Market Risk Adjusted Performance | 29.91 | |||
| Mean Deviation | 3.66 | |||
| Semi Deviation | 2.84 | |||
| Downside Deviation | 3.83 | |||
| Coefficient Of Variation | 499.46 | |||
| Standard Deviation | 6.16 |
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.
21Shares Tezos 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 21Shares Tezos 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. 21Shares Tezos' 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, 21Shares Tezos' 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 21Shares Tezos staking.
Other Information on Investing in 21Shares Etf
21Shares Tezos financial ratios help investors to determine whether 21Shares Etf 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 21Shares with respect to the benefits of owning 21Shares Tezos security.