Themes Small Cap Etf Volatility
| SMCF Etf | 34.21 0.29 0.85% |
At this point, Themes Small is very steady. Themes Small Cap owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.15, which indicates the etf had a 0.15% return per unit of risk over the last 3 months. We have found thirty technical indicators for Themes Small Cap, which you can use to evaluate the volatility of the etf. Please validate Themes Small's Coefficient Of Variation of 577.38, semi deviation of 0.7459, and Risk Adjusted Performance of 0.1368 to confirm if the risk estimate we provide is consistent with the expected return of 0.18%. Key indicators related to Themes Small's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Themes Small 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 Themes daily returns, and it is calculated using variance and standard deviation. We also use Themes's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Themes Small volatility.
Themes |
Downward market volatility can be a perfect environment for investors who play the long game with Themes Small. They may decide to buy additional shares of Themes Small at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Themes Etf
| 0.97 | VBR | Vanguard Small Cap | PairCorr |
| 0.94 | IWN | iShares Russell 2000 | PairCorr |
| 0.97 | DFAT | Dimensional Targeted | PairCorr |
| 0.94 | IJS | iShares SP Small | PairCorr |
| 0.94 | SLYV | SPDR SP 600 | PairCorr |
| 0.98 | AVUV | Avantis Small Cap | PairCorr |
| 0.96 | DES | WisdomTree SmallCap | PairCorr |
| 0.85 | CALF | Pacer Small Cap Low Volatility | PairCorr |
| 0.94 | VIOV | Vanguard SP Small | PairCorr |
Themes Small Market Sensitivity And Downside Risk
Themes Small's beta coefficient measures the volatility of Themes 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 Themes etf's returns against your selected market. In other words, Themes Small's beta of 1.35 provides an investor with an approximation of how much risk Themes Small etf can potentially add to one of your existing portfolios. Themes Small Cap has low volatility with Treynor Ratio of 0.16, Maximum Drawdown of 7.11 and kurtosis of 5.45. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Themes Small'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 Themes Small'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 Themes Small Cap Demand TrendCheck current 90 days Themes Small correlation with market (Dow Jones Industrial)Themes Beta |
Themes 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 | 1.22 |
It is essential to understand the difference between upside risk (as represented by Themes Small's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Themes Small's daily returns or price. Since the actual investment returns on holding a position in themes 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 Themes Small.
Themes Small Cap Etf Volatility Analysis
Volatility refers to the frequency at which Themes Small etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Themes Small's price changes. Investors will then calculate the volatility of Themes Small'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 Themes Small's volatility:
Historical Volatility
This type of etf volatility measures Themes Small's fluctuations based on previous trends. It's commonly used to predict Themes Small'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 Themes Small'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 Themes Small'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. Themes Small Cap 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.
Themes Small Projected Return Density Against Market
Given the investment horizon of 90 days the etf has the beta coefficient of 1.3517 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Themes Small will likely underperform.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 Themes Small or Small Value 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 Themes Small'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 Themes 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.
Themes Small Cap has an alpha of 0.047, implying that it can generate a 0.047 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Themes Small 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.Themes Small Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Themes Small is 673.84. The daily returns are distributed with a variance of 1.48 and standard deviation of 1.22. The mean deviation of Themes Small Cap is currently at 0.86. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 1.35 | |
σ | Overall volatility | 1.22 | |
Ir | Information ratio | 0.07 |
Themes Small Etf Return Volatility
Themes Small historical daily return volatility represents how much of Themes Small etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Exchange Traded Fund inherits 1.2157% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Themes Small Volatility
Volatility is a rate at which the price of Themes Small 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 Themes Small may increase or decrease. In other words, similar to Themes's beta indicator, it measures the risk of Themes Small and helps estimate the fluctuations that may happen in a short period of time. So if prices of Themes Small 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.3 ways to utilize Themes Small's volatility to invest better
Higher Themes Small's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Themes Small Cap 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. Themes Small Cap 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 Themes Small Cap investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Themes Small'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 Themes Small's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Themes Small Investment Opportunity
Themes Small Cap has a volatility of 1.22 and is 1.61 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Themes Small Cap is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use Themes Small Cap to enhance the returns of your portfolios. The etf experiences a moderate upward volatility. Check odds of Themes Small to be traded at 37.63 in 90 days.Very poor diversification
The correlation between Themes Small Cap and DJI is 0.82 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Themes Small Cap and DJI in the same portfolio, assuming nothing else is changed.
Themes Small Additional Risk Indicators
The analysis of Themes Small'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 Themes Small's investment and either accepting that risk or mitigating it. Along with some common measures of Themes Small 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 | 0.1368 | |||
| Market Risk Adjusted Performance | 0.1655 | |||
| Mean Deviation | 0.9076 | |||
| Semi Deviation | 0.7459 | |||
| Downside Deviation | 0.9707 | |||
| Coefficient Of Variation | 577.38 | |||
| Standard Deviation | 1.27 |
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.
Themes Small 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 Themes Small 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. Themes Small'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, Themes Small'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 Themes Small Cap.
When determining whether Themes Small Cap is a strong investment it is important to analyze Themes Small's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Themes Small's future performance. For an informed investment choice regarding Themes Etf, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Themes Small Cap. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
The market value of Themes Small Cap is measured differently than its book value, which is the value of Themes that is recorded on the company's balance sheet. Investors also form their own opinion of Themes Small's value that differs from its market value or its book value, called intrinsic value, which is Themes Small's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Themes Small's market value can be influenced by many factors that don't directly affect Themes Small's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Themes Small's value and its price as these two are different measures arrived at by different means. Investors typically determine if Themes Small is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Themes Small's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.