New America High Etf Volatility
| HYB Etf | USD 8.20 0.09 1.09% |
At this point, New America is very steady. New America High has Sharpe Ratio of 0.0385, which conveys that the entity had a 0.0385 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for New America, which you can use to evaluate the volatility of the etf. Please verify New America's Risk Adjusted Performance of 0.0369, mean deviation of 0.2879, and Downside Deviation of 0.5063 to check out if the risk estimate we provide is consistent with the expected return of 0.0148%. Key indicators related to New America's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
New America 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 New daily returns, and it is calculated using variance and standard deviation. We also use New's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of New America volatility.
New |
Downward market volatility can be a perfect environment for investors who play the long game with New America. They may decide to buy additional shares of New America at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against New Etf
New America Market Sensitivity And Downside Risk
New America's beta coefficient measures the volatility of New 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 New etf's returns against your selected market. In other words, New America's beta of -0.0083 provides an investor with an approximation of how much risk New America etf can potentially add to one of your existing portfolios. New America High exhibits very low volatility with skewness of -0.68 and kurtosis of 1.24. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure New America'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 New America'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 New America High Demand TrendCheck current 90 days New America correlation with market (Dow Jones Industrial)New Beta |
New 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 | 0.38 |
It is essential to understand the difference between upside risk (as represented by New America's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of New America's daily returns or price. Since the actual investment returns on holding a position in new 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 New America.
New America High Etf Volatility Analysis
Volatility refers to the frequency at which New America etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with New America's price changes. Investors will then calculate the volatility of New America'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 New America's volatility:
Historical Volatility
This type of etf volatility measures New America's fluctuations based on previous trends. It's commonly used to predict New America'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 New America'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 New America'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. New America High 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.
New America Projected Return Density Against Market
Considering the 90-day investment horizon New America High has a beta of -0.0083 . This usually indicates as returns on the benchmark increase, returns on holding New America are expected to decrease at a much lower rate. During a bear market, however, New America High is likely to outperform the market.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 New America 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 New America'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 New 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.
New America High has an alpha of 0.015, implying that it can generate a 0.015 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a New America 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.New America Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of New America is 2596.7. The daily returns are distributed with a variance of 0.15 and standard deviation of 0.38. The mean deviation of New America High is currently at 0.28. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.71
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | -0.0083 | |
σ | Overall volatility | 0.38 | |
Ir | Information ratio | 0.04 |
New America Etf Return Volatility
New America historical daily return volatility represents how much of New America etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF has volatility of 0.3839% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.713% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About New America Volatility
Volatility is a rate at which the price of New America 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 New America may increase or decrease. In other words, similar to New's beta indicator, it measures the risk of New America and helps estimate the fluctuations that may happen in a short period of time. So if prices of New America 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 New America High Income Fund Inc. is a closed-ended fixed income mutual fund launched and managed by T. Rowe Price Associates, Inc. The fund invests in the fixed income markets of the United States. It seeks to invest in the stocks of companies operating across the diversified sectors. The fund invests in high yield fixed-income securities i.e. junk bonds rated BB or lower by SP or Ba or lower by Moody. It benchmarks the performance of its portfolio against the Credit Suisse High Yield Index and the Citigroup 10 Year Treasury Index. The New America High Income Fund Inc. was formed on November 19, 1987 and is domiciled in the United States.
New America'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 New Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much New America's price varies over time.
3 ways to utilize New America's volatility to invest better
Higher New America's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of New America High 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. New America High 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 New America High investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in New America'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 New America's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
New America Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.71 and is 1.87 times more volatile than New America High. 3 percent of all equities and portfolios are less risky than New America. You can use New America High to protect your portfolios against small market fluctuations. The etf experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of New America to be traded at $7.95 in 90 days.Good diversification
The correlation between New America High and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New America High and DJI in the same portfolio, assuming nothing else is changed.
New America Additional Risk Indicators
The analysis of New America'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 New America's investment and either accepting that risk or mitigating it. Along with some common measures of New America 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 | 0.0369 | |||
| Market Risk Adjusted Performance | (1.79) | |||
| Mean Deviation | 0.2879 | |||
| Semi Deviation | 0.3707 | |||
| Downside Deviation | 0.5063 | |||
| Coefficient Of Variation | 1576.09 | |||
| Standard Deviation | 0.3937 |
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.
New America 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 New America 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. New America'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, New America'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 New America High.
Other Information on Investing in New Etf
New America financial ratios help investors to determine whether New Etf 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 New with respect to the benefits of owning New America security.