Two Roads Shared Etf Volatility
| CGV Etf | USD 15.85 0.00 0.00% |
Two Roads appears to be very steady, given 3 months investment horizon. Two Roads Shared owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.25, which indicates the etf had a 0.25 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Two Roads Shared, which you can use to evaluate the volatility of the etf. Please review Two Roads' Risk Adjusted Performance of 0.1486, semi deviation of 0.6478, and Coefficient Of Variation of 490.97 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.2501
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Based on monthly moving average Two Roads is performing at about 19% 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 Two Roads by adding it to a well-diversified portfolio.
Key indicators related to Two Roads' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Two Roads 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 Two daily returns, and it is calculated using variance and standard deviation. We also use Two's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Two Roads volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Two Roads. They may decide to buy additional shares of Two Roads at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Two Etf
| 0.99 | FNDC | Schwab Fundamental | PairCorr |
| 0.99 | AVDV | Avantis International | PairCorr |
| 0.98 | DLS | WisdomTree International | PairCorr |
| 0.99 | PDN | Invesco FTSE RAFI | PairCorr |
| 0.99 | DISV | Dimensional ETF Trust | PairCorr |
| 0.98 | ISVL | iShares International | PairCorr |
| 0.98 | DIM | WisdomTree International | PairCorr |
| 0.97 | DDLS | WisdomTree Dynamic | PairCorr |
| 0.98 | FYLD | Cambria Foreign Shar Low Volatility | PairCorr |
| 0.96 | GDXU | MicroSectors Gold Miners | PairCorr |
| 0.95 | MUU | Direxion Daily MU Trending | PairCorr |
| 0.95 | MULL | GraniteShares 2x Long Trending | PairCorr |
| 0.95 | AGQ | ProShares Ultra Silver | PairCorr |
| 0.97 | JNUG | Direxion Daily Junior | PairCorr |
| 0.9 | KORU | Direxion Daily South | PairCorr |
| 0.97 | NUGT | Direxion Daily Gold Sell-off Trend | PairCorr |
| 0.97 | GDMN | WisdomTree Efficient Gold | PairCorr |
| 0.94 | SHNY | Microsectors Gold | PairCorr |
| 0.98 | SIL | Global X Silver | PairCorr |
| 0.98 | DXIV | Dimensional ETF Trust | PairCorr |
| 0.93 | RCGE | RockCreek Global Equality | PairCorr |
| 0.85 | JNJ | Johnson Johnson | PairCorr |
| 0.8 | MRK | Merck Company Earnings Call Tomorrow | PairCorr |
Two Roads Market Sensitivity And Downside Risk
Two Roads' beta coefficient measures the volatility of Two 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 Two etf's returns against your selected market. In other words, Two Roads's beta of 0.51 provides an investor with an approximation of how much risk Two Roads etf can potentially add to one of your existing portfolios. Two Roads Shared has relatively low volatility with skewness of -0.14 and kurtosis of 3.32. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Two Roads' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Two Roads' 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 Two Roads Shared Demand TrendCheck current 90 days Two Roads correlation with market (Dow Jones Industrial)Two Roads Volatility and Downside Risk
Two 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.
Two Roads Shared Etf Volatility Analysis
Volatility refers to the frequency at which Two Roads etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Two Roads' price changes. Investors will then calculate the volatility of Two Roads' 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 Two Roads' volatility:
Historical Volatility
This type of etf volatility measures Two Roads' fluctuations based on previous trends. It's commonly used to predict Two Roads' 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 Two Roads' 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 Two Roads' 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. Two Roads Shared 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.
Two Roads Projected Return Density Against Market
Considering the 90-day investment horizon Two Roads has a beta of 0.5137 suggesting as returns on the market go up, Two Roads average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Two Roads Shared 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 Two Roads or Conductor 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 Two Roads' 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 Two 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.
Two Roads Shared has an alpha of 0.1422, implying that it can generate a 0.14 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a Two Roads 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.Two Roads Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Two Roads is 399.91. The daily returns are distributed with a variance of 0.71 and standard deviation of 0.84. The mean deviation of Two Roads Shared is currently at 0.57. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.14 | |
β | Beta against Dow Jones | 0.51 | |
σ | Overall volatility | 0.84 | |
Ir | Information ratio | 0.15 |
Two Roads Etf Return Volatility
Two Roads historical daily return volatility represents how much of Two Roads etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.841% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7435% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Two Roads Constituents Risk-Adjusted Indicators
There is a big difference between Two Etf performing well and Two Roads 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 Two Roads' 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SMCO | 0.75 | 0.01 | 0.01 | 0.05 | 0.98 | 1.56 | 4.18 | |||
| DSMC | 0.82 | 0.05 | 0.06 | 0.08 | 0.82 | 2.15 | 4.86 | |||
| SPYT | 0.44 | (0.02) | (0.05) | 0.00 | 0.67 | 0.89 | 3.37 | |||
| SHOC | 1.59 | 0.12 | 0.06 | 0.12 | 2.12 | 3.07 | 10.30 | |||
| KEAT | 0.50 | 0.15 | 0.17 | 0.45 | 0.46 | 0.99 | 2.18 | |||
| HECO | 1.89 | (0.11) | 0.00 | (0.05) | 0.00 | 4.27 | 12.01 | |||
| QUVU | 0.52 | 0.05 | 0.07 | 0.10 | 0.50 | 1.15 | 3.38 | |||
| MRNY | 2.90 | 0.55 | 0.15 | 0.31 | 3.24 | 9.56 | 19.49 | |||
| SPTB | 0.14 | (0.02) | 0.00 | (0.24) | 0.00 | 0.20 | 0.85 | |||
| EHLS | 0.89 | 0.05 | 0.03 | 0.11 | 1.29 | 1.81 | 5.25 |
About Two Roads Volatility
Volatility is a rate at which the price of Two Roads 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 Two Roads may increase or decrease. In other words, similar to Two's beta indicator, it measures the risk of Two Roads and helps estimate the fluctuations that may happen in a short period of time. So if prices of Two Roads 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 seeks to invest under normal circumstances in equity securities that are economically tied to at least three countries . Affinity Conductor is traded on NYSEARCA Exchange in the United States.
Two Roads' 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 Two Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Two Roads' price varies over time.
3 ways to utilize Two Roads' volatility to invest better
Higher Two Roads' etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Two Roads Shared 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. Two Roads Shared 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 Two Roads Shared investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Two Roads' 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 Two Roads' etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Two Roads Investment Opportunity
Two Roads Shared has a volatility of 0.84 and is 1.14 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Two Roads Shared is lower than 7 percent of all global equities and portfolios over the last 90 days. You can use Two Roads Shared to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Two Roads to be traded at $15.69 in 90 days.Very poor diversification
The correlation between Two Roads Shared and DJI is 0.84 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Two Roads Shared and DJI in the same portfolio, assuming nothing else is changed.
Two Roads Additional Risk Indicators
The analysis of Two Roads' 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 Two Roads' investment and either accepting that risk or mitigating it. Along with some common measures of Two Roads 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 | 0.1486 | |||
| Market Risk Adjusted Performance | 0.3217 | |||
| Mean Deviation | 0.5748 | |||
| Semi Deviation | 0.6478 | |||
| Downside Deviation | 1.01 | |||
| Coefficient Of Variation | 490.97 | |||
| Standard Deviation | 0.8353 |
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.
Two Roads 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 Two Roads 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. Two Roads' 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, Two Roads' 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 Two Roads Shared.
When determining whether Two Roads Shared is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Two Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Two Roads Shared Etf. Highlighted below are key reports to facilitate an investment decision about Two Roads Shared Etf: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Two Roads Shared. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Investors evaluate Two Roads Shared using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Two Roads' intrinsic value—the estimated true worth—helps identify when the stock trades at a discount or premium to fair value. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. External factors like market trends, sector rotation, and investor psychology can cause Two Roads' market price to deviate significantly from intrinsic value.
It's important to distinguish between Two Roads' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Two Roads should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Two Roads' market price signifies the transaction level at which participants voluntarily complete trades.