United States Oil Etf Volatility
| USO Etf | USD 73.20 1.18 1.64% |
United States Oil owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0337, which indicates the etf had a -0.0337% return per unit of risk over the last 3 months. United States Oil exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate United States' Coefficient Of Variation of (16,063), variance of 4.84, and Risk Adjusted Performance of 0.0019 to confirm the risk estimate we provide. Key indicators related to United States' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
United States 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 United daily returns, and it is calculated using variance and standard deviation. We also use United's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of United States volatility.
United |
Downward market volatility can be a perfect environment for investors who play the long game with United States. They may decide to buy additional shares of United States at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
United States Market Sensitivity And Downside Risk
United States' beta coefficient measures the volatility of United 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 United etf's returns against your selected market. In other words, United States's beta of -0.02 provides an investor with an approximation of how much risk United States etf can potentially add to one of your existing portfolios. United States Oil exhibits very low volatility with skewness of -0.22 and kurtosis of -0.51. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure United States' etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact United States' 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 United States Oil Demand TrendCheck current 90 days United States correlation with market (Dow Jones Industrial)United Beta |
United 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 | 2.18 |
It is essential to understand the difference between upside risk (as represented by United States's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of United States' daily returns or price. Since the actual investment returns on holding a position in united 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 United States.
United States Oil Etf Volatility Analysis
Volatility refers to the frequency at which United States etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with United States' price changes. Investors will then calculate the volatility of United States' 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 United States' volatility:
Historical Volatility
This type of etf volatility measures United States' fluctuations based on previous trends. It's commonly used to predict United States' 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 United States' 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 United States' 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. United States Oil 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.
United States Projected Return Density Against Market
Considering the 90-day investment horizon United States Oil has a beta of -0.02 . This usually implies as returns on the benchmark increase, returns on holding United States are expected to decrease at a much lower rate. During a bear market, however, United States Oil 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 United States or USCF Investments 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 United States' 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 United 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.
United States Oil has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an United States 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.United States Etf Risk Measures
Considering the 90-day investment horizon the coefficient of variation of United States is -2963.44. The daily returns are distributed with a variance of 4.77 and standard deviation of 2.18. The mean deviation of United States Oil is currently at 1.74. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | -0.02 | |
σ | Overall volatility | 2.18 | |
Ir | Information ratio | -0.05 |
United States Etf Return Volatility
United States historical daily return volatility represents how much of United States etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF has volatility of 2.1847% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7668% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About United States Volatility
Volatility is a rate at which the price of United States 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 United States may increase or decrease. In other words, similar to United's beta indicator, it measures the risk of United States and helps estimate the fluctuations that may happen in a short period of time. So if prices of United States 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.USO invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels. US Oil is traded on NYSEARCA Exchange in the United States.
United States' 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 United Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much United States' price varies over time.
3 ways to utilize United States' volatility to invest better
Higher United States' etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of United States Oil 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. United States Oil 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 United States Oil investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in United States' 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 United States' etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
United States Investment Opportunity
United States Oil has a volatility of 2.18 and is 2.83 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than United States. You can use United States Oil to enhance the returns of your portfolios. The etf experiences a large bullish trend. Check odds of United States to be traded at $80.52 in 90 days.Good diversification
The correlation between United States Oil and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding United States Oil and DJI in the same portfolio, assuming nothing else is changed.
United States Additional Risk Indicators
The analysis of United States' 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 United States' investment and either accepting that risk or mitigating it. Along with some common measures of United States 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 | 0.0019 | |||
| Market Risk Adjusted Performance | 1.19 | |||
| Mean Deviation | 1.77 | |||
| Coefficient Of Variation | (16,063) | |||
| Standard Deviation | 2.2 | |||
| Variance | 4.84 | |||
| Information Ratio | (0.05) |
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.
United States 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.
| Tesla vs. United States | ||
| Ford vs. United States | ||
| Citigroup vs. United States | ||
| GM vs. United States | ||
| Salesforce vs. United States | ||
| Visa vs. United States | ||
| Alphabet vs. United States | ||
| Dupont De vs. United States | ||
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 United States 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. United States' 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, United States' 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 United States Oil.
When determining whether United States Oil offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of United States' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of United States Oil Etf. Outlined below are crucial reports that will aid in making a well-informed decision on United States Oil Etf: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in United States Oil. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
The market value of United States Oil is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United States' value that differs from its market value or its book value, called intrinsic value, which is United States' 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 United States' market value can be influenced by many factors that don't directly affect United States' 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 United States' value and its price as these two are different measures arrived at by different means. Investors typically determine if United States is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United States' 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.