Build Funds Trust Etf Volatility
| BFIX Etf | USD 25.59 0.04 0.16% |
At this stage we consider Build Etf to be very steady. Build Funds Trust secures Sharpe Ratio (or Efficiency) of 0.16, which signifies that the etf had a 0.16 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Build Funds Trust, which you can use to evaluate the volatility of the entity. Please confirm Build Funds' Downside Deviation of 0.182, risk adjusted performance of 0.0703, and Mean Deviation of 0.1468 to double-check if the risk estimate we provide is consistent with the expected return of 0.0319%.
Sharpe Ratio = 0.1648
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| Negative Returns | BFIX |
Based on monthly moving average Build Funds is performing at about 13% 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 Build Funds by adding it to a well-diversified portfolio.
Key indicators related to Build Funds' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Build Funds 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 Build daily returns, and it is calculated using variance and standard deviation. We also use Build's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Build Funds volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Build Funds. They may decide to buy additional shares of Build Funds at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Build Etf
| 0.85 | BSV | Vanguard Short Term | PairCorr |
| 0.91 | IGSB | iShares 1 5 | PairCorr |
| 0.92 | SPSB | SPDR Barclays Short | PairCorr |
| 0.89 | ISTB | iShares Core 1 | PairCorr |
| 0.92 | SLQD | iShares 0 5 | PairCorr |
| 0.76 | GVI | iShares Intermediate | PairCorr |
| 0.92 | LDUR | PIMCO Enhanced Low | PairCorr |
| 0.9 | SUSB | iShares ESG 1 | PairCorr |
| 0.74 | VTI | Vanguard Total Stock | PairCorr |
| 0.82 | FB | ProShares Trust ProShares | PairCorr |
| 0.8 | VBK | Vanguard Small Cap | PairCorr |
| 0.93 | EEM | iShares MSCI Emerging Aggressive Push | PairCorr |
| 0.79 | FNGD | MicroSectors FANG Index | PairCorr |
| 0.93 | JPST | JPMorgan Ultra Short | PairCorr |
| 0.9 | DUKH | Ocean Park High | PairCorr |
| 0.87 | UMAY | Innovator ETFs Trust | PairCorr |
| 0.92 | QLV | FlexShares Quality Low | PairCorr |
| 0.95 | EURL | Direxion Daily FTSE | PairCorr |
| 0.96 | BMVP | Invesco Bloomberg MVP | PairCorr |
| 0.95 | BSMS | Invesco BulletShares 2028 | PairCorr |
| 0.84 | XAUG | FT Cboe Vest | PairCorr |
| 0.94 | JEPI | JPMorgan Equity Premium | PairCorr |
| 0.79 | GPT | Intelligent Alpha Atlas Symbol Change | PairCorr |
| 0.96 | CCNR | CoreCommodity Natural | PairCorr |
| 0.89 | PFFA | Virtus InfraCap Preferred | PairCorr |
| 0.94 | CHPS | Xtrackers Semiconductor | PairCorr |
Moving against Build Etf
| 0.87 | NFLX | Netflix | PairCorr |
| 0.61 | GBTC | Grayscale Bitcoin Trust | PairCorr |
| 0.32 | IND | Xtrackers Nifty 500 | PairCorr |
Build Funds Market Sensitivity And Downside Risk
Build Funds' beta coefficient measures the volatility of Build 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 Build etf's returns against your selected market. In other words, Build Funds's beta of 0.1 provides an investor with an approximation of how much risk Build Funds etf can potentially add to one of your existing portfolios. Build Funds Trust exhibits very low volatility with skewness of 0.09 and kurtosis of 0.98. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Build Funds' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Build Funds' 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 Build Funds Trust Demand TrendCheck current 90 days Build Funds correlation with market (Dow Jones Industrial)Build Funds Volatility and Downside Risk
Build 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.
Using Build Put Option to Manage Risk
Put options written on Build Funds grant holders of the option the right to sell a specified amount of Build Funds at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Build Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Build Funds' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Build Funds will be realized, the loss incurred will be offset by the profits made with the option trade.
Build Funds' PUT expiring on 2026-05-15
Profit |
| Build Funds Price At Expiration |
Build Funds Trust Etf Volatility Analysis
Volatility refers to the frequency at which Build Funds etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Build Funds' price changes. Investors will then calculate the volatility of Build Funds' 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 Build Funds' volatility:
Historical Volatility
This type of etf volatility measures Build Funds' fluctuations based on previous trends. It's commonly used to predict Build Funds' 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 Build Funds' 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 Build Funds' 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. Build Funds Trust 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.
Build Funds Projected Return Density Against Market
Given the investment horizon of 90 days Build Funds has a beta of 0.1028 suggesting as returns on the market go up, Build Funds average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Build Funds Trust 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 Build Funds or Metals & Mining 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 Build Funds' 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 Build 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.
Predicted Return Density |
| Returns |
What Drives a Build Funds 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Build Funds Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Build Funds is 606.74. The daily returns are distributed with a variance of 0.04 and standard deviation of 0.19. The mean deviation of Build Funds Trust is currently at 0.14. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 0.10 | |
σ | Overall volatility | 0.19 | |
Ir | Information ratio | -0.23 |
Build Funds Etf Return Volatility
Build Funds historical daily return volatility represents how much of Build Funds etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 0.1935% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7551% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Build Funds Competition Risk-Adjusted Indicators
There is a big difference between Build Etf performing well and Build Funds ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Build Funds' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.51 | 0.00 | (0.02) | 0.06 | 1.53 | 3.43 | 13.69 | |||
| MSFT | 1.32 | (0.36) | 0.00 | (0.92) | 0.00 | 1.90 | 13.28 | |||
| UBER | 1.50 | (0.46) | 0.00 | (0.90) | 0.00 | 2.41 | 11.09 | |||
| F | 1.22 | 0.07 | 0.05 | 0.14 | 1.20 | 3.34 | 7.16 | |||
| T | 1.02 | 0.23 | 0.17 | 3.71 | 0.77 | 3.87 | 5.31 | |||
| A | 1.27 | (0.30) | 0.00 | (0.17) | 0.00 | 2.90 | 7.85 | |||
| CRM | 1.68 | (0.41) | 0.00 | (0.35) | 0.00 | 2.94 | 12.37 | |||
| JPM | 1.26 | (0.15) | 0.00 | (0.04) | 0.00 | 2.34 | 7.38 | |||
| MRK | 1.35 | 0.49 | 0.35 | 0.77 | 0.97 | 3.59 | 8.74 | |||
| XOM | 1.24 | 0.36 | 0.22 | 1.65 | 1.11 | 2.68 | 6.83 |
About Build Funds Volatility
Volatility is a rate at which the price of Build Funds 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 Build Funds may increase or decrease. In other words, similar to Build's beta indicator, it measures the risk of Build Funds and helps estimate the fluctuations that may happen in a short period of time. So if prices of Build Funds 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 fund is an actively managed exchange-traded fund that seeks to achieve its investment objective through investing in a non-diversified portfolio of U.S. dollar-denominated, investment-grade bonds of U.S. and non-U.S. issuers either directly or indirectly via unaffiliated ETFs, and long call or long put options linked to the performance of an equity, ETF, or index. Build Bond is traded on NYSEARCA Exchange in the United States.
Build Funds' 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 Build Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Build Funds' price varies over time.
3 ways to utilize Build Funds' volatility to invest better
Higher Build Funds' etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Build Funds Trust 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. Build Funds Trust 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 Build Funds Trust investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Build Funds' 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 Build Funds' etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Build Funds Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.76 and is 4.0 times more volatile than Build Funds Trust. 1 percent of all equities and portfolios are less risky than Build Funds. You can use Build Funds Trust to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of Build Funds to be traded at $26.87 in 90 days.Very poor diversification
The correlation between Build Funds Trust and DJI is 0.87 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Build Funds Trust and DJI in the same portfolio, assuming nothing else is changed.
Build Funds Additional Risk Indicators
The analysis of Build Funds' 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 Build Funds' investment and either accepting that risk or mitigating it. Along with some common measures of Build Funds 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 | 0.0703 | |||
| Market Risk Adjusted Performance | 0.1527 | |||
| Mean Deviation | 0.1468 | |||
| Semi Deviation | 0.075 | |||
| Downside Deviation | 0.182 | |||
| Coefficient Of Variation | 796.25 | |||
| Standard Deviation | 0.1964 |
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.
Build Funds 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 Build Funds 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. Build Funds' 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, Build Funds' 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 Build Funds Trust.
When determining whether Build Funds Trust offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Build Funds' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Build Funds Trust Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Build Funds Trust Etf: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Build Funds Trust. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Build Funds Trust's market price often diverges from its book value, the accounting figure shown on Build's balance sheet. Smart investors calculate Build Funds' intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Since Build Funds' trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Build Funds' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Build Funds should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Build Funds' 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.