Axs 2x Innovation Etf Volatility
| TARK Etf | USD 83.39 1.76 2.07% |
AXS 2X appears to be very steady, given 3 months investment horizon. AXS 2X Innovation secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the etf had a 0.13% return per unit of risk over the last 3 months. By analyzing AXS 2X's technical indicators, you can evaluate if the expected return of 0.58% is justified by implied risk. Please makes use of AXS 2X's risk adjusted performance of 0.1033, and Mean Deviation of 3.42 to double-check if our risk estimates are consistent with your expectations. Key indicators related to AXS 2X's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
AXS 2X 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 AXS daily returns, and it is calculated using variance and standard deviation. We also use AXS's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of AXS 2X volatility.
AXS |
Downward market volatility can be a perfect environment for investors who play the long game with AXS 2X. They may decide to buy additional shares of AXS 2X at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with AXS Etf
| 0.85 | SSO | ProShares Ultra SP500 | PairCorr |
| 0.85 | SPXL | Direxion Daily SP500 | PairCorr |
| 0.84 | QLD | ProShares Ultra QQQ | PairCorr |
| 0.85 | UPRO | ProShares UltraPro SP500 | PairCorr |
| 0.7 | TECL | Direxion Daily Technology | PairCorr |
| 0.89 | FNGU | MicroSectors FANG Index | PairCorr |
Moving against AXS Etf
AXS 2X Market Sensitivity And Downside Risk
AXS 2X's beta coefficient measures the volatility of AXS 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 AXS etf's returns against your selected market. In other words, AXS 2X's beta of 4.3 provides an investor with an approximation of how much risk AXS 2X etf can potentially add to one of your existing portfolios. AXS 2X Innovation shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AXS 2X'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 AXS 2X'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 AXS 2X Innovation Demand TrendCheck current 90 days AXS 2X correlation with market (Dow Jones Industrial)AXS Beta |
AXS 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 | 4.5 |
It is essential to understand the difference between upside risk (as represented by AXS 2X's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of AXS 2X's daily returns or price. Since the actual investment returns on holding a position in axs 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 AXS 2X.
AXS 2X Innovation Etf Volatility Analysis
Volatility refers to the frequency at which AXS 2X etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with AXS 2X's price changes. Investors will then calculate the volatility of AXS 2X'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 AXS 2X's volatility:
Historical Volatility
This type of etf volatility measures AXS 2X's fluctuations based on previous trends. It's commonly used to predict AXS 2X'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 AXS 2X'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 AXS 2X'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. AXS 2X Innovation 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.
AXS 2X Projected Return Density Against Market
Given the investment horizon of 90 days the etf has the beta coefficient of 4.3015 . 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, AXS 2X 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 AXS 2X or AXS 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 AXS 2X'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 AXS 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.
AXS 2X Innovation has an alpha of 0.1387, implying that it can generate a 0.14 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an AXS 2X 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.AXS 2X Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of AXS 2X is 770.93. The daily returns are distributed with a variance of 20.28 and standard deviation of 4.5. The mean deviation of AXS 2X Innovation is currently at 3.27. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.14 | |
β | Beta against Dow Jones | 4.30 | |
σ | Overall volatility | 4.50 | |
Ir | Information ratio | 0.10 |
AXS 2X Etf Return Volatility
AXS 2X historical daily return volatility represents how much of AXS 2X etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF venture inherits 4.5034% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About AXS 2X Volatility
Volatility is a rate at which the price of AXS 2X 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 AXS 2X may increase or decrease. In other words, similar to AXS's beta indicator, it measures the risk of AXS 2X and helps estimate the fluctuations that may happen in a short period of time. So if prices of AXS 2X 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 fund will enter into one or more swap agreements with major global financial institutions for a specified period ranging from a day to more than one year whereby the fund and the global financial institution will agree to exchange the return earned or realized on the ARK Innovation ETF. Axs 2X is traded on NASDAQ Exchange in the United States.
AXS 2X'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 AXS Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much AXS 2X's price varies over time.
3 ways to utilize AXS 2X's volatility to invest better
Higher AXS 2X's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of AXS 2X Innovation 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. AXS 2X Innovation 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 AXS 2X Innovation investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in AXS 2X'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 AXS 2X's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
AXS 2X Investment Opportunity
AXS 2X Innovation has a volatility of 4.5 and is 5.92 times more volatile than Dow Jones Industrial. 40 percent of all equities and portfolios are less risky than AXS 2X. You can use AXS 2X Innovation to protect your portfolios against small market fluctuations. The etf experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of AXS 2X to be traded at $80.05 in 90 days.Poor diversification
The correlation between AXS 2X Innovation and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding AXS 2X Innovation and DJI in the same portfolio, assuming nothing else is changed.
AXS 2X Additional Risk Indicators
The analysis of AXS 2X'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 AXS 2X's investment and either accepting that risk or mitigating it. Along with some common measures of AXS 2X 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 | 0.1033 | |||
| Market Risk Adjusted Performance | 0.1417 | |||
| Mean Deviation | 3.42 | |||
| Semi Deviation | 3.83 | |||
| Downside Deviation | 4.24 | |||
| Coefficient Of Variation | 803.39 | |||
| Standard Deviation | 4.63 |
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.
AXS 2X 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 AXS 2X 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. AXS 2X'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, AXS 2X'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 AXS 2X Innovation.
When determining whether AXS 2X Innovation is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if AXS Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Axs 2x Innovation Etf. Highlighted below are key reports to facilitate an investment decision about Axs 2x Innovation Etf: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in AXS 2X Innovation. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
The market value of AXS 2X Innovation is measured differently than its book value, which is the value of AXS that is recorded on the company's balance sheet. Investors also form their own opinion of AXS 2X's value that differs from its market value or its book value, called intrinsic value, which is AXS 2X'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 AXS 2X's market value can be influenced by many factors that don't directly affect AXS 2X'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 AXS 2X's value and its price as these two are different measures arrived at by different means. Investors typically determine if AXS 2X is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AXS 2X'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.