China Fund Volatility
| CHN Fund | USD 11.91 0.17 1.41% |
China Fund appears to be not too volatile, given 3 months investment horizon. China Fund secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the fund had a 0.12% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for China Fund, which you can use to evaluate the volatility of the entity. Please makes use of China Fund's Risk Adjusted Performance of 0.0954, mean deviation of 1.95, and Downside Deviation of 2.45 to double-check if our risk estimates are consistent with your expectations. Key indicators related to China Fund's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
China Fund 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 China daily returns, and it is calculated using variance and standard deviation. We also use China's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of China Fund volatility.
China |
Downward market volatility can be a perfect environment for investors who play the long game with China Fund. They may decide to buy additional shares of China Fund at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with China Fund
| 0.64 | SMPIX | Semiconductor Ultrasector | PairCorr |
| 0.68 | SMPSX | Semiconductor Ultrasector | PairCorr |
| 0.87 | RSNRX | Victory Global Natural | PairCorr |
| 0.87 | RSNYX | Victory Global Natural | PairCorr |
| 0.64 | FIKGX | Fidelity Advisor Sem | PairCorr |
| 0.65 | RMQAX | Monthly Rebalance | PairCorr |
| 0.87 | RGNCX | Victory Global Natural | PairCorr |
| 0.65 | RMQHX | Monthly Rebalance | PairCorr |
China Fund Market Sensitivity And Downside Risk
China Fund's beta coefficient measures the volatility of China 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 China fund's returns against your selected market. In other words, China Fund's beta of 0.26 provides an investor with an approximation of how much risk China Fund fund can potentially add to one of your existing portfolios. China Fund currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.29. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Fund's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Fund's 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 China Fund Demand TrendCheck current 90 days China Fund correlation with market (Dow Jones Industrial)China Beta |
China 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 | 2.88 |
It is essential to understand the difference between upside risk (as represented by China Fund's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of China Fund's daily returns or price. Since the actual investment returns on holding a position in china 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 China Fund.
China Fund Fund Volatility Analysis
Volatility refers to the frequency at which China Fund fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with China Fund's price changes. Investors will then calculate the volatility of China Fund's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A 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 China Fund's volatility:
Historical Volatility
This type of fund volatility measures China Fund's fluctuations based on previous trends. It's commonly used to predict China Fund's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for China Fund'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 China Fund'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. China Fund 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.
China Fund Projected Return Density Against Market
Considering the 90-day investment horizon China Fund has a beta of 0.2629 suggesting as returns on the market go up, China Fund average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding China Fund 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 China Fund or Financial Services 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 China Fund's price will be affected by overall 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 China 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.
China Fund has an alpha of 0.2932, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a China Fund 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.China Fund Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of China Fund is 829.89. The daily returns are distributed with a variance of 8.3 and standard deviation of 2.88. The mean deviation of China Fund is currently at 1.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.29 | |
β | Beta against Dow Jones | 0.26 | |
σ | Overall volatility | 2.88 | |
Ir | Information ratio | 0.08 |
China Fund Fund Return Volatility
China Fund historical daily return volatility represents how much of China Fund fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 2.8814% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About China Fund Volatility
Volatility is a rate at which the price of China Fund 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 China Fund may increase or decrease. In other words, similar to China's beta indicator, it measures the risk of China Fund and helps estimate the fluctuations that may happen in a short period of time. So if prices of China Fund 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 China Fund, Inc. is a closed ended equity mutual fund launched and managed by Allianz Global Investors U.S. LLC. It invests in the public equity markets of China that includes the Peoples Republic of China, Hong Kong, and Taiwan. The fund invests in stocks of companies operating across diversified sectors. It employs a combination of fundamental analysis with bottom-up approach and quantitative analysis to create its portfolio. The fund seeks to benchmarks the performance of its portfolio against the MSCI Golden Dragon Index. The China Fund, Inc. was formed on April 28, 1992 and is domiciled in the United States.
China Fund'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 China Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much China Fund's price varies over time.
3 ways to utilize China Fund's volatility to invest better
Higher China Fund's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of China Fund 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. China Fund 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 China Fund investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in China Fund'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 China Fund's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
China Fund Investment Opportunity
China Fund has a volatility of 2.88 and is 3.79 times more volatile than Dow Jones Industrial. 25 percent of all equities and portfolios are less risky than China Fund. You can use China Fund to protect your portfolios against small market fluctuations. The fund experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of China Fund to be traded at $11.55 in 90 days.Significant diversification
The correlation between China Fund and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding China Fund and DJI in the same portfolio, assuming nothing else is changed.
China Fund Additional Risk Indicators
The analysis of China Fund'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 China Fund's investment and either accepting that risk or mitigating it. Along with some common measures of China Fund 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 | 0.0954 | |||
| Market Risk Adjusted Performance | 1.22 | |||
| Mean Deviation | 1.95 | |||
| Semi Deviation | 2.17 | |||
| Downside Deviation | 2.45 | |||
| Coefficient Of Variation | 866.23 | |||
| Standard Deviation | 2.85 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
China Fund 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 China Fund 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. China Fund'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, China Fund'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 China Fund.
Other Information on Investing in China Fund
China Fund financial ratios help investors to determine whether China 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 China with respect to the benefits of owning China Fund security.
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