Payden Floating Rate Fund Volatility

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Moving against Payden Mutual Fund

Payden Floating Market Sensitivity And Downside Risk

3 Months Beta |Analyze Payden Floating Rate Demand TrendCheck current 90 days Payden Floating correlation with market (Dow Jones Industrial)

Payden Beta

-0.0115

Standard Deviation

0.1

Payden Floating Rate Mutual Fund Volatility Analysis

Payden Floating Projected Return Density Against Market

Assuming the 90 days horizon Payden Floating Rate has a beta of -0.0115 indicating as returns on the benchmark increase, returns on holding Payden Floating are expected to decrease at a much lower rate. During a bear market, however, Payden Floating Rate is likely to outperform the market. Payden Floating Rate has an alpha of 0.0181, implying that it can generate a 0.0181 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Payden Floating's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how payden mutual fund's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Payden Floating 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.

Payden Floating Mutual Fund Risk Measures

Payden Floating Mutual Fund Return Volatility

Payden Floating historical daily return volatility represents how much of Payden Floating fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.1018% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon.

The analysis of Payden Floating'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 Payden Floating's investment and either accepting that risk or mitigating it. Along with some common measures of Payden Floating mutual 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.

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

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 Payden Floating 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. Payden Floating'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, Payden Floating'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 Payden Floating Rate.