Taiwan Closed Fund Volatility
| TWN Fund | USD 59.28 0.60 1.02% |
Taiwan Closed appears to be very steady, given 3 months investment horizon. Taiwan Closed owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.23, which indicates the fund had a 0.23 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Taiwan Closed, which you can use to evaluate the volatility of the fund. Please review Taiwan Closed's Risk Adjusted Performance of 0.1219, semi deviation of 0.9262, and Coefficient Of Variation of 624.75 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.2257
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Based on monthly moving average Taiwan Closed is performing at about 17% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Taiwan Closed by adding it to a well-diversified portfolio.
Key indicators related to Taiwan Closed's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Taiwan Closed 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 Taiwan daily returns, and it is calculated using variance and standard deviation. We also use Taiwan's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Taiwan Closed volatility.
Taiwan |
Downward market volatility can be a perfect environment for investors who play the long game with Taiwan Closed. They may decide to buy additional shares of Taiwan Closed at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Taiwan Fund
| 0.85 | PDI | Pimco Dynamic Income Sell-off Trend | PairCorr |
| 0.74 | CSIBX | Calvert Bond Portfolio | PairCorr |
| 0.7 | PGUCX | Virtus Global Infras | PairCorr |
| 0.93 | PBPNX | Pimco Realpath Blend | PairCorr |
| 0.94 | FLRTX | Franklin Lifesmart 2030 | PairCorr |
| 0.9 | GIIGX | Gamco International | PairCorr |
| 0.77 | FBNIX | Fidelity Short Term | PairCorr |
| 0.78 | FKTQX | Franklin California Tax | PairCorr |
| 0.68 | NRCRX | Neuberger Berman Core | PairCorr |
| 0.88 | AREOX | One Choice 2055 | PairCorr |
| 0.89 | PMAPX | Midcap Sp 400 | PairCorr |
| 0.86 | SNPTX | Dws Equity Sector | PairCorr |
| 0.93 | SWEGX | Schwab Markettrack All | PairCorr |
| 0.87 | IASRX | Ivy Asset Strategy | PairCorr |
| 0.86 | FNKIX | Frank Value Fund | PairCorr |
| 0.88 | EVGRX | Evaluator Growth Rms | PairCorr |
| 0.92 | KGGAX | Kopernik Global All | PairCorr |
| 0.83 | FAFCX | Fidelity Advisor Fin | PairCorr |
| 0.92 | RRTIX | T Rowe Price | PairCorr |
| 0.91 | MHOVX | Mfs Global High | PairCorr |
| 0.81 | 0P000070L2 | Rbc Money Market | PairCorr |
| 0.84 | AISHX | Aristotle Funds Series | PairCorr |
Moving against Taiwan Fund
| 0.88 | UIPIX | Ultrashort Mid Cap | PairCorr |
| 0.83 | CESGX | Coho Relative Value | PairCorr |
| 0.77 | TCSUX | Cleartrack 2020 Class | PairCorr |
| 0.74 | TCTGX | Transamerica Cleartrack | PairCorr |
| 0.74 | TDKTX | Cleartrack 2015 Class | PairCorr |
| 0.74 | TCTJX | Transamerica Cleartrack | PairCorr |
| 0.51 | USPSX | Profunds Ultrashort Steady Growth | PairCorr |
| 0.49 | USPIX | Profunds Ultrashort Steady Growth | PairCorr |
Taiwan Closed Market Sensitivity And Downside Risk
Taiwan Closed's beta coefficient measures the volatility of Taiwan 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 Taiwan fund's returns against your selected market. In other words, Taiwan Closed's beta of 0.4 provides an investor with an approximation of how much risk Taiwan Closed fund can potentially add to one of your existing portfolios. Taiwan Closed has relatively low volatility with skewness of 0.13 and kurtosis of -0.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Taiwan Closed'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 Taiwan Closed'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 Taiwan Closed Demand TrendCheck current 90 days Taiwan Closed correlation with market (Dow Jones Industrial)Taiwan Closed Volatility and Downside Risk
Taiwan 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.
Taiwan Closed Fund Volatility Analysis
Volatility refers to the frequency at which Taiwan Closed fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Taiwan Closed's price changes. Investors will then calculate the volatility of Taiwan Closed'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 Taiwan Closed's volatility:
Historical Volatility
This type of fund volatility measures Taiwan Closed's fluctuations based on previous trends. It's commonly used to predict Taiwan Closed'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 Taiwan Closed'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 Taiwan Closed'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. Taiwan Closed 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.
Taiwan Closed Projected Return Density Against Market
Considering the 90-day investment horizon Taiwan Closed has a beta of 0.3976 . This usually implies as returns on the market go up, Taiwan Closed average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Taiwan Closed 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 Taiwan Closed 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 Taiwan Closed'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 Taiwan 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.
Predicted Return Density |
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What Drives a Taiwan Closed 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Taiwan Closed Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Taiwan Closed is 443.06. The daily returns are distributed with a variance of 1.61 and standard deviation of 1.27. The mean deviation of Taiwan Closed is currently at 1.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | 0.40 | |
σ | Overall volatility | 1.27 | |
Ir | Information ratio | 0.11 |
Taiwan Closed Fund Return Volatility
Taiwan Closed historical daily return volatility represents how much of Taiwan Closed fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 1.2704% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7649% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Risk-Adjusted Indicators
There is a big difference between Taiwan Fund performing well and Taiwan Closed Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Taiwan Closed's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| FOF | 0.66 | 0.16 | 0.14 | 0.58 | 0.63 | 1.33 | 6.22 | |||
| ASG | 0.71 | (0.09) | 0.00 | (0.07) | 0.00 | 1.72 | 3.91 | |||
| HAMVX | 0.65 | 0.14 | 0.17 | 0.21 | 0.45 | 1.70 | 3.50 | |||
| BIGFX | 0.60 | (0.01) | (0.04) | 0.04 | 0.71 | 1.16 | 3.10 | |||
| CSSZX | 0.90 | 0.26 | 0.27 | 0.34 | 0.56 | 2.14 | 9.81 | |||
| EDD | 0.55 | 0.17 | 0.16 | 0.69 | 0.44 | 1.46 | 3.29 | |||
| GSXIX | 0.84 | 0.06 | 0.07 | 0.11 | 0.81 | 1.67 | 4.58 | |||
| TDF | 0.74 | (0.01) | (0.05) | 0.03 | 0.84 | 1.54 | 5.71 |
About Taiwan Closed Volatility
Volatility is a rate at which the price of Taiwan Closed 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 Taiwan Closed may increase or decrease. In other words, similar to Taiwan's beta indicator, it measures the risk of Taiwan Closed and helps estimate the fluctuations that may happen in a short period of time. So if prices of Taiwan Closed 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 Taiwan Fund, Inc. is a closed-ended equity mutual fund launched and managed by Nomura Asset Management U.S.A. Inc. It invests in the public equity markets of Taiwan. The fund seeks to invest in stocks of companies operating across diversified sectors. It employs fundamental analysis focusing on such factors as overall growth prospects, competitive position in the respective industry, technology, research, and development, productivity, labor costs, raw material costs and sources, profit margins, return on investment, capital resources, government regulation, and management to create its portfolio. The fund benchmarks the performance of its portfolio against the TAIEX Total Return Index. The Taiwan Fund, Inc. was formed on December 23, 1986 and is domiciled in the United States.
Taiwan Closed'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 Taiwan Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Taiwan Closed's price varies over time.
3 ways to utilize Taiwan Closed's volatility to invest better
Higher Taiwan Closed's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Taiwan Closed 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. Taiwan Closed 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 Taiwan Closed investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Taiwan Closed'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 Taiwan Closed's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Taiwan Closed Investment Opportunity
Taiwan Closed has a volatility of 1.27 and is 1.67 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than Taiwan Closed. You can use Taiwan Closed to enhance the returns of your portfolios. The fund experiences a large bullish trend. Check odds of Taiwan Closed to be traded at $65.21 in 90 days.Very poor diversification
The correlation between Taiwan Closed and DJI is 0.88 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Closed and DJI in the same portfolio, assuming nothing else is changed.
Taiwan Closed Additional Risk Indicators
The analysis of Taiwan Closed'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 Taiwan Closed's investment and either accepting that risk or mitigating it. Along with some common measures of Taiwan Closed 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 | 0.1219 | |||
| Market Risk Adjusted Performance | 0.4959 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 0.9262 | |||
| Downside Deviation | 1.1 | |||
| Coefficient Of Variation | 624.75 | |||
| 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 funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Taiwan Closed 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 Taiwan Closed 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. Taiwan Closed'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, Taiwan Closed'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 Taiwan Closed.
Other Information on Investing in Taiwan Fund
Taiwan Closed financial ratios help investors to determine whether Taiwan 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 Taiwan with respect to the benefits of owning Taiwan Closed security.
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