VanEck Vectors (Mexico) Volatility
| GDX Etf | MXN 768.24 14.24 1.89% |
At this stage we consider VanEck Etf to be very steady. VanEck Vectors ETF owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.041, which indicates the etf had a 0.041% return per unit of risk over the last 3 months. We have found thirty technical indicators for VanEck Vectors ETF, which you can use to evaluate the volatility of the etf. Please validate VanEck Vectors' Coefficient Of Variation of 17171.1, risk adjusted performance of 0.0108, and Semi Deviation of 2.08 to confirm if the risk estimate we provide is consistent with the expected return of 0.087%. Key indicators related to VanEck Vectors' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
VanEck Vectors 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 VanEck daily returns, and it is calculated using variance and standard deviation. We also use VanEck's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of VanEck Vectors volatility.
VanEck |
Downward market volatility can be a perfect environment for investors who play the long game with VanEck Vectors. They may decide to buy additional shares of VanEck Vectors at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against VanEck Etf
VanEck Vectors Market Sensitivity And Downside Risk
VanEck Vectors' beta coefficient measures the volatility of VanEck 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 VanEck etf's returns against your selected market. In other words, VanEck Vectors's beta of 0.0767 provides an investor with an approximation of how much risk VanEck Vectors etf can potentially add to one of your existing portfolios. VanEck Vectors ETF currently demonstrates below-average downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of -0.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure VanEck Vectors' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact VanEck Vectors' 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 VanEck Vectors ETF Demand TrendCheck current 90 days VanEck Vectors correlation with market (Dow Jones Industrial)VanEck Beta |
VanEck 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 | 2.12 |
It is essential to understand the difference between upside risk (as represented by VanEck Vectors's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of VanEck Vectors' daily returns or price. Since the actual investment returns on holding a position in vaneck 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 VanEck Vectors.
VanEck Vectors ETF Etf Volatility Analysis
Volatility refers to the frequency at which VanEck Vectors etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with VanEck Vectors' price changes. Investors will then calculate the volatility of VanEck Vectors' 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 VanEck Vectors' volatility:
Historical Volatility
This type of etf volatility measures VanEck Vectors' fluctuations based on previous trends. It's commonly used to predict VanEck Vectors' 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 VanEck Vectors' 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 VanEck Vectors' 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. VanEck Vectors ETF 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.
VanEck Vectors Projected Return Density Against Market
Assuming the 90 days trading horizon VanEck Vectors has a beta of 0.0767 . This usually indicates as returns on the market go up, VanEck Vectors average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding VanEck Vectors ETF 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 VanEck Vectors or VanEck 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 VanEck Vectors' 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 VanEck 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.
VanEck Vectors ETF has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a VanEck Vectors 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.VanEck Vectors Etf Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of VanEck Vectors is 2438.44. The daily returns are distributed with a variance of 4.5 and standard deviation of 2.12. The mean deviation of VanEck Vectors ETF is currently at 1.52. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.0058 | |
β | Beta against Dow Jones | 0.08 | |
σ | Overall volatility | 2.12 | |
Ir | Information ratio | -0.05 |
VanEck Vectors Etf Return Volatility
VanEck Vectors historical daily return volatility represents how much of VanEck Vectors etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF assumes 2.1216% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7454% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About VanEck Vectors Volatility
Volatility is a rate at which the price of VanEck Vectors 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 VanEck Vectors may increase or decrease. In other words, similar to VanEck's beta indicator, it measures the risk of VanEck Vectors and helps estimate the fluctuations that may happen in a short period of time. So if prices of VanEck Vectors 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 investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index. VANECK VECTORS is traded on Mexico Stock Exchange in Mexico.
VanEck Vectors' 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 VanEck Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much VanEck Vectors' price varies over time.
3 ways to utilize VanEck Vectors' volatility to invest better
Higher VanEck Vectors' etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of VanEck Vectors ETF 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. VanEck Vectors ETF 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 VanEck Vectors ETF investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in VanEck Vectors' 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 VanEck Vectors' etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
VanEck Vectors Investment Opportunity
VanEck Vectors ETF has a volatility of 2.12 and is 2.83 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than VanEck Vectors. You can use VanEck Vectors ETF to enhance the returns of your portfolios. The etf experiences a large bullish trend. Check odds of VanEck Vectors to be traded at 845.06 in 90 days.Significant diversification
The correlation between VanEck Vectors ETF and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors ETF and DJI in the same portfolio, assuming nothing else is changed.
VanEck Vectors Additional Risk Indicators
The analysis of VanEck Vectors' 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 VanEck Vectors' investment and either accepting that risk or mitigating it. Along with some common measures of VanEck Vectors 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 | 0.0108 | |||
| Market Risk Adjusted Performance | 0.0381 | |||
| Mean Deviation | 1.5 | |||
| Semi Deviation | 2.08 | |||
| Downside Deviation | 2.57 | |||
| Coefficient Of Variation | 17171.1 | |||
| Standard Deviation | 2.09 |
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.
VanEck Vectors 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 VanEck Vectors 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. VanEck Vectors' 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, VanEck Vectors' 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 VanEck Vectors ETF.
Additional Information and Resources on Investing in VanEck Etf
When determining whether VanEck Vectors ETF offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of VanEck Vectors' 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 Vaneck Vectors Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Vaneck Vectors Etf:Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in VanEck Vectors ETF. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.