Invesco Trust For Stock Volatility
| VGM Stock | USD 10.16 0.03 0.29% |
Invesco Trust For holds Efficiency (Sharpe) Ratio of -0.0071, which attests that the entity had a -0.0071% return per unit of risk over the last 3 months. Invesco Trust For exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Invesco Trust's Downside Deviation of 0.562, market risk adjusted performance of (0.22), and Risk Adjusted Performance of 0.0125 to validate the risk estimate we provide. Key indicators related to Invesco Trust's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Invesco Trust Stock 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 Invesco daily returns, and it is calculated using variance and standard deviation. We also use Invesco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Invesco Trust volatility.
Invesco |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Invesco Trust can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Invesco Trust at lower prices. For example, an investor can purchase Invesco stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Invesco Trust's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against Invesco Stock
| 0.54 | GS | Goldman Sachs Group Fiscal Year End 21st of January 2025 | PairCorr |
| 0.54 | IPXXU | Inflection Point Acq | PairCorr |
| 0.5 | MS | Morgan Stanley Fiscal Year End 21st of January 2025 | PairCorr |
| 0.41 | NMR | Nomura Holdings ADR | PairCorr |
| 0.4 | SF | Stifel Financial Earnings Call This Week | PairCorr |
| 0.4 | FRHC | Freedom Holding Corp | PairCorr |
| 0.36 | AMP | Ameriprise Financial Fiscal Year End 22nd of January 2025 | PairCorr |
| 0.35 | EVR | Evercore Partners | PairCorr |
| 0.34 | WAVS | Western Acquisition | PairCorr |
Invesco Trust Market Sensitivity And Downside Risk
Invesco Trust's beta coefficient measures the volatility of Invesco stock 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 Invesco stock's returns against your selected market. In other words, Invesco Trust's beta of -0.0069 provides an investor with an approximation of how much risk Invesco Trust stock can potentially add to one of your existing portfolios. Invesco Trust For exhibits very low volatility with skewness of -0.01 and kurtosis of 1.3. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Invesco Trust's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Invesco Trust's stock 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 Invesco Trust For Demand TrendCheck current 90 days Invesco Trust correlation with market (Dow Jones Industrial)Invesco Beta |
Invesco 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 | 0.48 |
It is essential to understand the difference between upside risk (as represented by Invesco Trust's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Invesco Trust's daily returns or price. Since the actual investment returns on holding a position in invesco stock 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 Invesco Trust.
Invesco Trust For Stock Volatility Analysis
Volatility refers to the frequency at which Invesco Trust stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Invesco Trust's price changes. Investors will then calculate the volatility of Invesco Trust's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Invesco Trust's volatility:
Historical Volatility
This type of stock volatility measures Invesco Trust's fluctuations based on previous trends. It's commonly used to predict Invesco Trust's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Invesco Trust's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Invesco Trust'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. Invesco Trust For 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.
Invesco Trust Projected Return Density Against Market
Considering the 90-day investment horizon Invesco Trust For has a beta of -0.0069 . This entails as returns on the benchmark increase, returns on holding Invesco Trust are expected to decrease at a much lower rate. During a bear market, however, Invesco Trust For 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 Invesco Trust or Capital Markets 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 Invesco Trust's price will be affected by overall stock 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 Invesco stock'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.
Invesco Trust For has an alpha of 0.0022, implying that it can generate a 0.0022 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Invesco Trust Price Volatility?
Several factors can influence a stock'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.Invesco Trust Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Invesco Trust is -13999.99. The daily returns are distributed with a variance of 0.23 and standard deviation of 0.48. The mean deviation of Invesco Trust For is currently at 0.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0 | |
β | Beta against Dow Jones | -0.0069 | |
σ | Overall volatility | 0.48 | |
Ir | Information ratio | -0.17 |
Invesco Trust Stock Return Volatility
Invesco Trust historical daily return volatility represents how much of Invesco Trust stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 0.4845% 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 Invesco Trust Volatility
Volatility is a rate at which the price of Invesco Trust 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 Invesco Trust may increase or decrease. In other words, similar to Invesco's beta indicator, it measures the risk of Invesco Trust and helps estimate the fluctuations that may happen in a short period of time. So if prices of Invesco Trust 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 534.2 M | 748.4 M |
Invesco Trust'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 Invesco Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Invesco Trust's price varies over time.
3 ways to utilize Invesco Trust's volatility to invest better
Higher Invesco Trust's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Invesco Trust For stock 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. Invesco Trust For stock 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 Invesco Trust For investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Invesco Trust's stock 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 Invesco Trust's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Invesco Trust Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.77 and is 1.6 times more volatile than Invesco Trust For. Compared to the overall equity markets, volatility of historical daily returns of Invesco Trust For is lower than 4 percent of all global equities and portfolios over the last 90 days. You can use Invesco Trust For to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Invesco Trust to be traded at $10.06 in 90 days.Good diversification
The correlation between Invesco Trust For 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 Invesco Trust For and DJI in the same portfolio, assuming nothing else is changed.
Invesco Trust Additional Risk Indicators
The analysis of Invesco Trust'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 Invesco Trust's investment and either accepting that risk or mitigating it. Along with some common measures of Invesco Trust stock'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 | 0.0125 | |||
| Market Risk Adjusted Performance | (0.22) | |||
| Mean Deviation | 0.3559 | |||
| Semi Deviation | 0.4667 | |||
| Downside Deviation | 0.562 | |||
| Coefficient Of Variation | 4149.88 | |||
| Standard Deviation | 0.4807 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Invesco Trust 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 Invesco Trust 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. Invesco Trust'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, Invesco Trust'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 Invesco Trust For.
When determining whether Invesco Trust For offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Invesco Trust's 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 Invesco Trust For Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Invesco Trust For Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Invesco Trust For. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Invesco Trust. If investors know Invesco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Invesco Trust listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.675 | Dividend Share 0.521 | Earnings Share 0.98 | Revenue Per Share 0.795 | Quarterly Revenue Growth (0.01) |
The market value of Invesco Trust For is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco Trust's value that differs from its market value or its book value, called intrinsic value, which is Invesco Trust'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 Invesco Trust's market value can be influenced by many factors that don't directly affect Invesco Trust'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 Invesco Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco Trust'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.