AEP TEX INC Volatility
| 00108WAF7 | 78.16 4.82 6.57% |
Sharpe Ratio = -0.0613
| Leading Returns | Top Quartile | |||
| Strong | ||||
| Moderate | ||||
| Modest | ||||
| Cash | Low | Moderate | Elevated | High |
| Below Benchmark | 00108WAF7 |
For AEP TEX INC, recent data highlights a Market Risk Adjusted Performance of -0.4%, a Risk of 2.09, and a Risk Adjusted Performance of 0.05%. Monthly performance data suggests the bond is falling short of its full potential.
Key indicators related to 00108WAF7's volatility include:90 Days Market Risk | Chance Of Default | 90 Days Economic Sensitivity |
Key risk metrics for 00108WAF7 (3 Months):
Beta -0.26 | Alpha 0.12 | Risk 2.09 | Sharpe Ratio -0.06 | Expected Return -0.13 |
Moving Against 00108WAF7 Bond
| 0.45 | UAN | CVR Partners LP | PairCorr |
| 0.4 | CFIGY | Challenger ADR | PairCorr |
| 0.37 | AM | Antero Midstream Partners Earnings Call This Week | PairCorr |
| 0.31 | CSBI | Carroll Shelby | PairCorr |
Sensitivity To Market
00108WAF7 beta coefficient measures the volatility of 00108WAF7 bond relative to the systematic risk of the broad market benchmark. A beta of -0.26 indicates the degree of sensitivity to market-wide movements. Current total volatility is approximately 2.09%. AEP TEX INC has shown noticeable price swings over the selected period. Downside deviation is about 2.69% and standard deviation is about 2.82%, which summarize how widely returns have moved. Bond volatility often comes from rate movement and credit spread changes. Fixed-income variability is frequently explained by duration (rate sensitivity) and spread changes (credit conditions).
3 Months Beta |AEP TEX INC Demand TrendCurrent 90-day 00108WAF7 correlation with market (Dow Jones Industrial)Downside Risk
Standard deviation measures how far 00108WAF7 returns deviate from the historical mean and remains a primary indicator of total price volatility. A large standard deviation signals wide price swings; a small one signals relative stability. Tracking 00108WAF7 standard deviation across time horizons shows whether volatility is expanding or contracting.
Standard Deviation | 2.09 |
It is essential to understand the difference between upside risk and downside risk for 00108WAF7. Total volatility includes favorable moves, while downside deviation isolates the loss risk in 00108WAF7's daily returns. Both total and downside risk metrics contribute to a thorough analysis of 00108WAF7. For AEP TEX INC, recent data highlights a Downside Deviation of 2.69, a Downside Variance of 7.21, and a Maximum Drawdown of 15.50.
Bond Volatility Analysis
Volatility refers to the frequency at which 00108WAF7 bond price increases or decreases within a specified period. It is generally measured from either the standard deviation or variance between returns from that same bond. A bond with high volatility produces outsized gains or losses compared to a low-volatility alternative.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. The Average Price transformation calculates the mean of AEP TEX INC's open, high, low, and close for each trading period. By incorporating all four price components equally, it provides a balanced representation of each period's trading activity. Compared to using the closing price alone, the average price reduces the influence of end-of-day positioning and can serve as a smoother input for other technical indicators.
Projected Return Density Against Market
Over the selected 90-day horizon, AEP TEX INC has a beta of -0.2637. This usually implies that as returns on the benchmark increase, returns on 00108WAF7 tend to move in the opposite direction, though by a smaller magnitude. During a bear market, however, AEP TEX INC tends to outperform the market.Both systematic and unsystematic risks influence 00108WAF7. Market-wide movements drive the former, while company or sector-specific developments drive the latter. Beta estimates market responsiveness. For AEP TEX INC, recent data highlights a Downside Deviation of 2.69, a Mean Deviation of 1.73, and a Semi Deviation of 2.53.
Predicted Return Distribution |
| Density |
What Drives 00108WAF7's Price Volatility?
Industry Dynamics
Regulatory updates, demand shifts, and competitive changes in the Electric sector can move 00108WAF7's volatility even when broad indices are stable.Political and Economic Environment
Rates, inflation expectations, and policy headlines can shift discount rates and risk appetite for 00108WAF7.00108WAF7's Company-Specific Factors
Earnings surprises, guidance changes, management decisions, and litigation risk are common catalysts for sharp re-pricing in 00108WAF7's shares.Bond Risk Measures
Over the selected 90-day horizon, the coefficient of variation of 00108WAF7 is -1630.56. The daily returns are distributed with a variance of 4.37 and standard deviation of 2.09. The mean deviation of AEP TEX INC is currently at 1.07. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.94
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | -0.2637 | |
σ | Overall volatility | 2.09 | |
Ir | Information ratio | 0.04 |
Bond Return Volatility
00108WAF7 historical daily return volatility represents how much of 00108WAF7 bond's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. AEP TEX INC reported 2.0896% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial reported 0.9502% volatility on return distribution over a 90-day investment horizon. Performance |
| Timeline |
Related Correlations Analysis
| 0.89 | 0.0 | 0.75 | 0.84 | 0.0 | 0.42 | DRETF | ||
| 0.89 | 0.0 | 0.77 | 0.93 | 0.0 | 0.58 | ALK | ||
| 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ATCD | ||
| 0.75 | 0.77 | 0.0 | 0.85 | 0.0 | 0.59 | FNNNF | ||
| 0.84 | 0.93 | 0.0 | 0.85 | 0.0 | 0.58 | WZZAF | ||
| 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | EVOH | ||
| 0.42 | 0.58 | 0.0 | 0.59 | 0.58 | 0.0 | IFSUF | ||
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
|
Risk-Adjusted Indicators
Strong recent returns in 00108WAF7 Bond do not always mean 00108WAF7 Corporate Bond is outperforming peers on business quality. Reviewing 00108WAF7's risk-adjusted indicators gives a clearer view of whether returns are being earned efficiently. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| DRETF | 0.61 | 0.01 | 0.00 | 0.08 | 1.29 | 0.96 | 18.51 | |||
| ALK | 3.03 | -0.18 | 0.00 | -0.06 | 0.00 | 7.58 | 16.99 | |||
| ATCD | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| FNNNF | 0.30 | -0.12 | 0.00 | -0.40 | 0.00 | 0.00 | 7.16 | |||
| WZZAF | 1.14 | -0.57 | 0.00 | -0.89 | 0.00 | 0.00 | 21.71 | |||
| EVOH | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| IFSUF | 1.41 | -0.09 | 0.00 | -0.17 | 0.00 | 4.79 | 25.96 |
Risk Metrics, Assumptions & Methodology
Systematic sensitivity for 00108WAF7 reflects how much yield-curve and credit-cycle movements contribute to aggregate price volatility. Beta instability across periods suggests the relationship between market risk and asset volatility is shifting.
AEP TEX INC figures are aggregated from issuer disclosures and fixed-income reference feeds and normalized across reporting formats. Volatility and downside metrics are estimated from historical return dispersion.
Editorial review and methodology oversight provided by: Raphi Shpitalnik, Junior Member of Macroaxis Editorial Board
00108WAF7 Volatility Profile Summary
Recent data suggests that AEP TEX INC is more volatile than Dow Jones Industrial by approximately 2.2x over the selected horizon. This differential reflects the relative dispersion of returns and frames how the asset responds to broader market conditions. Observed price behavior indicates modest directional movement within the current volatility regime. Across the current 90-day horizon, that places the security below 18% of the broader equity and portfolio universe on a pure volatility basis. This positioning reflects relative dispersion compared to peers rather than extreme instability.AEP TEX INC with characteristics aligned to broad market upside participation. This directional read frames the latest price swing through a simple momentum and follow-through lens. It gives extra weight to the size of the move, the quote level, and whether the instrument trades in a hype-prone venue. a very speculative upward sentiment. Return distributions derived from historical modeling outline a range of potential outcomes over the selected 90-day horizon. View 00108WAF7 probability analysis.
Weak diversification
00108WAF7 currently posts a 0.46 correlation with Dow Jones, indicating a Weak diversification relationship for the active sample. This chart measures the degree of risk overlap between 00108WAF7 and Dow Jones.
00108WAF7 Additional Risk Indicators
Looking at additional risk metrics for AEP TEX INC frames how the position may behave under different market and portfolio conditions. The practical goal is to identify how much risk is being accepted and whether that risk still fits the thesis.
| Risk Adjusted Performance | 0.0486 | |||
| Market Risk Adjusted Performance | -0.43 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 2.53 | |||
| Downside Deviation | 2.69 | |||
| Coefficient Of Variation | 2237.43 | |||
| Standard Deviation | 2.82 |
00108WAF7 Suggested Diversification Pairs
Pair trading with 00108WAF7 hedges company-specific exposure by balancing a long view with an offsetting position. This structure emphasizes relative performance differences between paired assets rather than broad market direction.
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 00108WAF7 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. 00108WAF7'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, 00108WAF7'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 AEP TEX INC.
More Resources for 00108WAF7 Bond Analysis
Other Information on Investing in 00108WAF7 Bond
00108WAF7 bond data outlines relationships between coupon income, price sensitivity, and credit standing. They summarize how fixed-income characteristics connect to market pricing.