Teucrium Agricultural Etf Volatility
| TAGS Etf | USD 25.18 0.12 0.47% |
Teucrium Agricultural owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0259, which indicates the etf had a -0.0259% return per unit of risk over the last 3 months. Teucrium Agricultural exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Teucrium Agricultural's Semi Deviation of 0.7057, coefficient of variation of 3409.03, and Risk Adjusted Performance of 0.0219 to confirm the risk estimate we provide. Key indicators related to Teucrium Agricultural's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Teucrium Agricultural 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 Teucrium daily returns, and it is calculated using variance and standard deviation. We also use Teucrium's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Teucrium Agricultural volatility.
Teucrium |
Downward market volatility can be a perfect environment for investors who play the long game with Teucrium Agricultural. They may decide to buy additional shares of Teucrium Agricultural at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against Teucrium Etf
| 0.41 | ITWO | Proshares Russell 2000 Upward Rally | PairCorr |
| 0.38 | MEME | Roundhill Investments | PairCorr |
| 0.32 | RSPY | Tuttle Capital Management | PairCorr |
| 0.32 | ETH | Grayscale Ethereum Mini | PairCorr |
Teucrium Agricultural Market Sensitivity And Downside Risk
Teucrium Agricultural's beta coefficient measures the volatility of Teucrium 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 Teucrium etf's returns against your selected market. In other words, Teucrium Agricultural's beta of -0.13 provides an investor with an approximation of how much risk Teucrium Agricultural etf can potentially add to one of your existing portfolios. Teucrium Agricultural exhibits relatively low volatility with skewness of 0.11 and kurtosis of -0.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Teucrium Agricultural'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 Teucrium Agricultural'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 Teucrium Agricultural Demand TrendCheck current 90 days Teucrium Agricultural correlation with market (Dow Jones Industrial)Teucrium Beta |
Teucrium 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 | 0.71 |
It is essential to understand the difference between upside risk (as represented by Teucrium Agricultural's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Teucrium Agricultural's daily returns or price. Since the actual investment returns on holding a position in teucrium 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 Teucrium Agricultural.
Using Teucrium Put Option to Manage Risk
Put options written on Teucrium Agricultural grant holders of the option the right to sell a specified amount of Teucrium Agricultural at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Teucrium Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Teucrium Agricultural's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Teucrium Agricultural will be realized, the loss incurred will be offset by the profits made with the option trade.
Teucrium Agricultural's PUT expiring on 2025-02-21
Profit |
| Teucrium Agricultural Price At Expiration |
Current Teucrium Agricultural Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | TAGS Option Put 21-02-2025 27 | 0.0 | 0.0 | 449 | 2025-02-21 | 0.75 - 1.95 | 1.25 | View |
Teucrium Agricultural Etf Volatility Analysis
Volatility refers to the frequency at which Teucrium Agricultural etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Teucrium Agricultural's price changes. Investors will then calculate the volatility of Teucrium Agricultural'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 Teucrium Agricultural's volatility:
Historical Volatility
This type of etf volatility measures Teucrium Agricultural's fluctuations based on previous trends. It's commonly used to predict Teucrium Agricultural'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 Teucrium Agricultural'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 Teucrium Agricultural'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. Teucrium Agricultural 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.
Teucrium Agricultural Projected Return Density Against Market
Given the investment horizon of 90 days Teucrium Agricultural has a beta of -0.129 . This usually implies as returns on the benchmark increase, returns on holding Teucrium Agricultural are expected to decrease at a much lower rate. During a bear market, however, Teucrium Agricultural 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 Teucrium Agricultural or Teucrium 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 Teucrium Agricultural'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 Teucrium 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.
Teucrium Agricultural has an alpha of 0.0278, implying that it can generate a 0.0278 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Teucrium Agricultural 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.Teucrium Agricultural Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Teucrium Agricultural is -3856.88. The daily returns are distributed with a variance of 0.51 and standard deviation of 0.71. The mean deviation of Teucrium Agricultural is currently at 0.58. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | -0.13 | |
σ | Overall volatility | 0.71 | |
Ir | Information ratio | -0.16 |
Teucrium Agricultural Etf Return Volatility
Teucrium Agricultural historical daily return volatility represents how much of Teucrium Agricultural etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The exchange-traded fund inherits 0.7121% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Teucrium Agricultural Volatility
Volatility is a rate at which the price of Teucrium Agricultural 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 Teucrium Agricultural may increase or decrease. In other words, similar to Teucrium's beta indicator, it measures the risk of Teucrium Agricultural and helps estimate the fluctuations that may happen in a short period of time. So if prices of Teucrium Agricultural 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 Teucrium Agricultural's volatility to invest better
Higher Teucrium Agricultural's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Teucrium Agricultural 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. Teucrium Agricultural 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 Teucrium Agricultural investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Teucrium Agricultural'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 Teucrium Agricultural's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Teucrium Agricultural Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.75 and is 1.06 times more volatile than Teucrium Agricultural. Compared to the overall equity markets, volatility of historical daily returns of Teucrium Agricultural is lower than 6 percent of all global equities and portfolios over the last 90 days. You can use Teucrium Agricultural to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend and little activity. Check odds of Teucrium Agricultural to be traded at $24.93 in 90 days.Good diversification
The correlation between Teucrium Agricultural and DJI is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Teucrium Agricultural and DJI in the same portfolio, assuming nothing else is changed.
Teucrium Agricultural Additional Risk Indicators
The analysis of Teucrium Agricultural'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 Teucrium Agricultural's investment and either accepting that risk or mitigating it. Along with some common measures of Teucrium Agricultural 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 | 0.0219 | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 0.5968 | |||
| Semi Deviation | 0.7057 | |||
| Downside Deviation | 0.7331 | |||
| Coefficient Of Variation | 3409.03 | |||
| Standard Deviation | 0.7291 |
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.
Teucrium Agricultural 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 Teucrium Agricultural 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. Teucrium Agricultural'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, Teucrium Agricultural'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 Teucrium Agricultural.
When determining whether Teucrium Agricultural is a strong investment it is important to analyze Teucrium Agricultural'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 Teucrium Agricultural's future performance. For an informed investment choice regarding Teucrium 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 Teucrium Agricultural. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
The market value of Teucrium Agricultural is measured differently than its book value, which is the value of Teucrium that is recorded on the company's balance sheet. Investors also form their own opinion of Teucrium Agricultural's value that differs from its market value or its book value, called intrinsic value, which is Teucrium Agricultural'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 Teucrium Agricultural's market value can be influenced by many factors that don't directly affect Teucrium Agricultural'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 Teucrium Agricultural's value and its price as these two are different measures arrived at by different means. Investors typically determine if Teucrium Agricultural is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Teucrium Agricultural'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.