Dnp Select Income Fund Volatility
| DNP Fund | USD 9.51 0.05 0.53% |
Currently, Dnp Select Income is very steady. Dnp Select Income secures Sharpe Ratio (or Efficiency) of 0.0489, which denotes the fund had a 0.0489% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Dnp Select Income, which you can use to evaluate the volatility of the entity. Please confirm Dnp Select's Coefficient Of Variation of 1374.79, downside deviation of 1.06, and Mean Deviation of 0.7324 to check if the risk estimate we provide is consistent with the expected return of 0.0447%. Key indicators related to Dnp Select's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Dnp Select 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 Dnp daily returns, and it is calculated using variance and standard deviation. We also use Dnp's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Dnp Select volatility.
Dnp |
Downward market volatility can be a perfect environment for investors who play the long game with Dnp Select. They may decide to buy additional shares of Dnp Select at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Dnp Fund
Dnp Select Market Sensitivity And Downside Risk
Dnp Select's beta coefficient measures the volatility of Dnp 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 Dnp fund's returns against your selected market. In other words, Dnp Select's beta of 0.24 provides an investor with an approximation of how much risk Dnp Select fund can potentially add to one of your existing portfolios. Dnp Select Income has relatively low volatility with skewness of -0.54 and kurtosis of 0.26. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dnp Select'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 Dnp Select'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 Dnp Select Income Demand TrendCheck current 90 days Dnp Select correlation with market (Dow Jones Industrial)Dnp Beta |
Dnp 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 | 0.91 |
It is essential to understand the difference between upside risk (as represented by Dnp Select's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Dnp Select's daily returns or price. Since the actual investment returns on holding a position in dnp 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 Dnp Select.
Dnp Select Income Fund Volatility Analysis
Volatility refers to the frequency at which Dnp Select fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Dnp Select's price changes. Investors will then calculate the volatility of Dnp Select'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 Dnp Select's volatility:
Historical Volatility
This type of fund volatility measures Dnp Select's fluctuations based on previous trends. It's commonly used to predict Dnp Select'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 Dnp Select'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 Dnp Select'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. Dnp Select Income 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.
Dnp Select Projected Return Density Against Market
Considering the 90-day investment horizon Dnp Select has a beta of 0.2381 suggesting as returns on the market go up, Dnp Select average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Dnp Select Income 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 Dnp Select 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 Dnp Select'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 Dnp 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.
Dnp Select Income has an alpha of 0.0294, implying that it can generate a 0.0294 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Dnp Select 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.Dnp Select Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Dnp Select is 2045.14. The daily returns are distributed with a variance of 0.84 and standard deviation of 0.91. The mean deviation of Dnp Select Income is currently at 0.71. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | 0.24 | |
σ | Overall volatility | 0.91 | |
Ir | Information ratio | -0.07 |
Dnp Select Fund Return Volatility
Dnp Select historical daily return volatility represents how much of Dnp Select fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.9144% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Dnp Select Volatility
Volatility is a rate at which the price of Dnp Select 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 Dnp Select may increase or decrease. In other words, similar to Dnp's beta indicator, it measures the risk of Dnp Select and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dnp Select 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.DNP Select Income Fund Inc. is a closed ended balanced mutual fund launched by Virtus Investment Partners, Inc. The fund is managed by Duff Phelps Investment Management Co. It invests in the public equity and fixed income markets of the United States. For the fixed income portion, the fund invests in bonds. It seeks to invest in stocks of companies operating in the Utility sector. The fund invests in stocks of companies across all market capitalizations. It benchmarks the performance of its portfolio against the SP 500 Utilities Index and Barclays Capital U.S. Utility Bond Index. DNP Select Income Fund Inc. was formed on November 26, 1986 and is domiciled in the United States.
Dnp Select'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 Dnp Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Dnp Select's price varies over time.
3 ways to utilize Dnp Select's volatility to invest better
Higher Dnp Select's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Dnp Select Income 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. Dnp Select Income 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 Dnp Select Income investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Dnp Select'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 Dnp Select's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Dnp Select Investment Opportunity
Dnp Select Income has a volatility of 0.91 and is 1.17 times more volatile than Dow Jones Industrial. 8 percent of all equities and portfolios are less risky than Dnp Select. You can use Dnp Select Income to enhance the returns of your portfolios. The fund experiences a moderate upward volatility. Check odds of Dnp Select to be traded at $10.46 in 90 days.Average diversification
The correlation between Dnp Select Income and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dnp Select Income and DJI in the same portfolio, assuming nothing else is changed.
Dnp Select Additional Risk Indicators
The analysis of Dnp Select'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 Dnp Select's investment and either accepting that risk or mitigating it. Along with some common measures of Dnp Select 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 | 0.0576 | |||
| Market Risk Adjusted Performance | 0.2542 | |||
| Mean Deviation | 0.7324 | |||
| Semi Deviation | 0.9699 | |||
| Downside Deviation | 1.06 | |||
| Coefficient Of Variation | 1374.79 | |||
| Standard Deviation | 0.9368 |
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.
Dnp Select 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 Dnp Select 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. Dnp Select'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, Dnp Select'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 Dnp Select Income.
Other Information on Investing in Dnp Fund
Dnp Select financial ratios help investors to determine whether Dnp 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 Dnp with respect to the benefits of owning Dnp Select security.
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