Valkyrie Bitcoin Etf Volatility
| BRRR Etf | 28.08 0.28 1.01% |
Valkyrie Bitcoin appears to be not too volatile, given 3 months investment horizon. Valkyrie Bitcoin owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.23, which indicates the etf had a 0.23% return per unit of risk over the last 3 months. By inspecting Valkyrie Bitcoin's technical indicators, you can evaluate if the expected return of 0.74% is justified by implied risk. Please review Valkyrie Bitcoin's Semi Deviation of 1.86, risk adjusted performance of 0.196, and Coefficient Of Variation of 407.14 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Valkyrie Bitcoin's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Valkyrie 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 Valkyrie daily returns, and it is calculated using variance and standard deviation. We also use Valkyrie's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Valkyrie Bitcoin volatility.
Valkyrie |
Downward market volatility can be a perfect environment for investors who play the long game with Valkyrie Bitcoin. They may decide to buy additional shares of Valkyrie Bitcoin at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Valkyrie Etf
| 1.0 | GBTC | Grayscale Bitcoin Trust | PairCorr |
| 1.0 | BITO | ProShares Bitcoin Aggressive Push | PairCorr |
| 0.97 | BLOK | Amplify Transformational | PairCorr |
| 0.92 | BLCN | Siren Nasdaq NexGen | PairCorr |
| 0.97 | BITQ | Bitwise Crypto Industry | PairCorr |
| 0.93 | SPBC | Simplify Equity PLUS | PairCorr |
| 1.0 | BTC | Grayscale Bitcoin Mini | PairCorr |
| 0.96 | DAPP | VanEck Digital Trans | PairCorr |
Moving against Valkyrie Etf
| 0.49 | LUX | Tema ETF Trust | PairCorr |
| 0.47 | VXX | iPath Series B | PairCorr |
| 0.39 | INTL | Main International ETF | PairCorr |
| 0.32 | HUM | Humana Inc Fiscal Year End 23rd of January 2025 | PairCorr |
Valkyrie Bitcoin Market Sensitivity And Downside Risk
Valkyrie Bitcoin's beta coefficient measures the volatility of Valkyrie 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 Valkyrie etf's returns against your selected market. In other words, Valkyrie Bitcoin's beta of 2.34 provides an investor with an approximation of how much risk Valkyrie Bitcoin etf can potentially add to one of your existing portfolios. Valkyrie Bitcoin currently demonstrates below-average downside deviation. It has Information Ratio of 0.21 and Jensen Alpha of 0.51. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Valkyrie 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 Valkyrie 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 Valkyrie Bitcoin Demand TrendCheck current 90 days Valkyrie Bitcoin correlation with market (Dow Jones Industrial)Valkyrie Beta |
Valkyrie 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 | 3.25 |
It is essential to understand the difference between upside risk (as represented by Valkyrie Bitcoin's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Valkyrie Bitcoin's daily returns or price. Since the actual investment returns on holding a position in valkyrie 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 Valkyrie Bitcoin.
Valkyrie Bitcoin Etf Volatility Analysis
Volatility refers to the frequency at which Valkyrie Bitcoin etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Valkyrie Bitcoin's price changes. Investors will then calculate the volatility of Valkyrie 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 Valkyrie Bitcoin's volatility:
Historical Volatility
This type of etf volatility measures Valkyrie Bitcoin's fluctuations based on previous trends. It's commonly used to predict Valkyrie 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 Valkyrie 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 Valkyrie 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 sixty-one. Valkyrie Bitcoin 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.
Valkyrie Bitcoin Projected Return Density Against Market
Given the investment horizon of 90 days the etf has the beta coefficient of 2.341 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Valkyrie Bitcoin will likely underperform.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 Valkyrie 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 Valkyrie 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 Valkyrie 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.
Valkyrie Bitcoin has an alpha of 0.514, implying that it can generate a 0.51 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Valkyrie 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.Valkyrie Bitcoin Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Valkyrie Bitcoin is 438.84. The daily returns are distributed with a variance of 10.58 and standard deviation of 3.25. The mean deviation of Valkyrie Bitcoin is currently at 2.42. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.51 | |
β | Beta against Dow Jones | 2.34 | |
σ | Overall volatility | 3.25 | |
Ir | Information ratio | 0.21 |
Valkyrie Bitcoin Etf Return Volatility
Valkyrie Bitcoin historical daily return volatility represents how much of Valkyrie Bitcoin etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 3.2532% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Valkyrie Bitcoin Volatility
Volatility is a rate at which the price of Valkyrie 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 Valkyrie Bitcoin may increase or decrease. In other words, similar to Valkyrie's beta indicator, it measures the risk of Valkyrie Bitcoin and helps estimate the fluctuations that may happen in a short period of time. So if prices of Valkyrie 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 Valkyrie Bitcoin's volatility to invest better
Higher Valkyrie 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 Valkyrie Bitcoin 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. Valkyrie Bitcoin 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 Valkyrie Bitcoin investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Valkyrie 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 Valkyrie Bitcoin's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Valkyrie Bitcoin Investment Opportunity
Valkyrie Bitcoin has a volatility of 3.25 and is 4.28 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Valkyrie Bitcoin is lower than 28 percent of all global equities and portfolios over the last 90 days. You can use Valkyrie Bitcoin to enhance the returns of your portfolios. The etf experiences a large bullish trend. Check odds of Valkyrie Bitcoin to be traded at 30.89 in 90 days.Very weak diversification
The correlation between Valkyrie Bitcoin and DJI is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin and DJI in the same portfolio, assuming nothing else is changed.
Valkyrie Bitcoin Additional Risk Indicators
The analysis of Valkyrie 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 Valkyrie Bitcoin's investment and either accepting that risk or mitigating it. Along with some common measures of Valkyrie 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 | 0.196 | |||
| Market Risk Adjusted Performance | 0.3503 | |||
| Mean Deviation | 2.47 | |||
| Semi Deviation | 1.86 | |||
| Downside Deviation | 2.39 | |||
| Coefficient Of Variation | 407.14 | |||
| Standard Deviation | 3.28 |
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.
Valkyrie 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 Valkyrie 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. Valkyrie 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, Valkyrie 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 Valkyrie Bitcoin.
When determining whether Valkyrie Bitcoin is a strong investment it is important to analyze Valkyrie 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 Valkyrie Bitcoin's future performance. For an informed investment choice regarding Valkyrie Etf, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Valkyrie Bitcoin. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
The market value of Valkyrie Bitcoin is measured differently than its book value, which is the value of Valkyrie that is recorded on the company's balance sheet. Investors also form their own opinion of Valkyrie Bitcoin's value that differs from its market value or its book value, called intrinsic value, which is Valkyrie 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 Valkyrie Bitcoin's market value can be influenced by many factors that don't directly affect Valkyrie 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 Valkyrie Bitcoin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Valkyrie Bitcoin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valkyrie 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.