Voya Asia Pacific Fund Volatility
| IAE Fund | USD 6.21 0.01 0.16% |
Voya Asia Pacific owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0073, which indicates the fund had a -0.0073% return per unit of risk over the last 3 months. Voya Asia Pacific exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Voya Asia's Risk Adjusted Performance of (0.01), variance of 1.3, and Coefficient Of Variation of (7,376) to confirm the risk estimate we provide. Key indicators related to Voya Asia's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Voya Asia 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 Voya daily returns, and it is calculated using variance and standard deviation. We also use Voya's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Voya Asia volatility.
Voya |
Downward market volatility can be a perfect environment for investors who play the long game with Voya Asia. They may decide to buy additional shares of Voya Asia at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against Voya Fund
Voya Asia Market Sensitivity And Downside Risk
Voya Asia's beta coefficient measures the volatility of Voya 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 Voya fund's returns against your selected market. In other words, Voya Asia's beta of 0.28 provides an investor with an approximation of how much risk Voya Asia fund can potentially add to one of your existing portfolios. Voya Asia Pacific exhibits very low volatility with skewness of 1.02 and kurtosis of 6.39. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Voya Asia'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 Voya Asia'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 Voya Asia Pacific Demand TrendCheck current 90 days Voya Asia correlation with market (Dow Jones Industrial)Voya Beta |
Voya 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 | 1.16 |
It is essential to understand the difference between upside risk (as represented by Voya Asia's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Voya Asia's daily returns or price. Since the actual investment returns on holding a position in voya 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 Voya Asia.
Voya Asia Pacific Fund Volatility Analysis
Volatility refers to the frequency at which Voya Asia fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Voya Asia's price changes. Investors will then calculate the volatility of Voya Asia'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 Voya Asia's volatility:
Historical Volatility
This type of fund volatility measures Voya Asia's fluctuations based on previous trends. It's commonly used to predict Voya Asia'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 Voya Asia'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 Voya Asia'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. Voya Asia Pacific 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.
Voya Asia Projected Return Density Against Market
Considering the 90-day investment horizon Voya Asia has a beta of 0.2817 . This usually indicates as returns on the market go up, Voya Asia average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Voya Asia Pacific 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 Voya Asia 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 Voya Asia'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 Voya 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.
Voya Asia Pacific 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 Voya Asia 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.Voya Asia Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Voya Asia is -13633.05. The daily returns are distributed with a variance of 1.34 and standard deviation of 1.16. The mean deviation of Voya Asia Pacific is currently at 0.76. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.06 | |
β | Beta against Dow Jones | 0.28 | |
σ | Overall volatility | 1.16 | |
Ir | Information ratio | -0.13 |
Voya Asia Fund Return Volatility
Voya Asia historical daily return volatility represents how much of Voya Asia fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 1.1567% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Voya Asia Volatility
Volatility is a rate at which the price of Voya Asia 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 Voya Asia may increase or decrease. In other words, similar to Voya's beta indicator, it measures the risk of Voya Asia and helps estimate the fluctuations that may happen in a short period of time. So if prices of Voya Asia 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.Voya Asia Pacific High Dividend Equity Income Fund is a closed-ended equity mutual fund launched by Voya Investment Management LLC. The fund is co-managed by Voya Investments, LLC and NNIP Advisors B.V. It invests in the public equity markets of the Asia Pacific region. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in dividend-paying stocks of companies. The fund also invests through derivatives having economic characteristics similar to the equity securities such as call options on selected indices andor equity securities. It employs a combination of fundamental and quantitative analysis with a bottom-up stock picking approach, focusing on such factors as liquidity and dividend yield, cash flow strength, capital structure, capital expenditures, and operating margins to create its portfolio. The fund benchmarks the performance of its portfolio against the MSCI All Country Asia Pacific ex-Japan Index. It was formerly known as ING Asia Pacific High Dividend Equity Income Fund. Voya Asia Pacific High Dividend Equity Income Fund was formed on January 8, 2007 and is domiciled in the United States.
Voya Asia'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 Voya Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Voya Asia's price varies over time.
3 ways to utilize Voya Asia's volatility to invest better
Higher Voya Asia's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Voya Asia Pacific 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. Voya Asia Pacific 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 Voya Asia Pacific investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Voya Asia'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 Voya Asia's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Voya Asia Investment Opportunity
Voya Asia Pacific has a volatility of 1.16 and is 1.51 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Voya Asia Pacific is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use Voya Asia Pacific to enhance the returns of your portfolios. The fund experiences a normal upward fluctuation. Check odds of Voya Asia to be traded at $6.52 in 90 days.Average diversification
The correlation between Voya Asia Pacific 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 Voya Asia Pacific and DJI in the same portfolio, assuming nothing else is changed.
Voya Asia Additional Risk Indicators
The analysis of Voya Asia'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 Voya Asia's investment and either accepting that risk or mitigating it. Along with some common measures of Voya Asia 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 0.7431 | |||
| Coefficient Of Variation | (7,376) | |||
| Standard Deviation | 1.14 | |||
| Variance | 1.3 | |||
| Information Ratio | (0.13) |
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.
Voya Asia 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 Voya Asia 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. Voya Asia'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, Voya Asia'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 Voya Asia Pacific.
Other Information on Investing in Voya Fund
Voya Asia financial ratios help investors to determine whether Voya 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 Voya with respect to the benefits of owning Voya Asia security.
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