Vanguard Industrials Index Fund Volatility
| VINAX Fund | USD 142.12 1.87 1.33% |
At this stage we consider Vanguard Mutual Fund to be very steady. Vanguard Industrials owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.18, which indicates the fund had a 0.18% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Vanguard Industrials Index, which you can use to evaluate the volatility of the fund. Please validate Vanguard Industrials' Risk Adjusted Performance of 0.1475, semi deviation of 0.5836, and Coefficient Of Variation of 527.74 to confirm if the risk estimate we provide is consistent with the expected return of 0.18%. Key indicators related to Vanguard Industrials' volatility include:
450 Days Market Risk | Chance Of Distress | 450 Days Economic Sensitivity |
Vanguard Industrials Mutual 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 Vanguard daily returns, and it is calculated using variance and standard deviation. We also use Vanguard's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vanguard Industrials volatility.
Vanguard |
Downward market volatility can be a perfect environment for investors who play the long game with Vanguard Industrials. They may decide to buy additional shares of Vanguard Industrials at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Vanguard Mutual Fund
| 0.83 | B | Barnes Group | PairCorr |
| 0.69 | G | Genpact Limited | PairCorr |
| 0.86 | J | Jacobs Solutions | PairCorr |
| 0.91 | R | Ryder System | PairCorr |
| 0.69 | AL | Air Lease | PairCorr |
| 0.81 | AZ | A2Z Smart Technologies | PairCorr |
Moving against Vanguard Mutual Fund
| 0.75 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.67 | CP | Canadian Pacific Railway | PairCorr |
| 0.31 | AP | Ampco Pittsburgh | PairCorr |
Vanguard Industrials Market Sensitivity And Downside Risk
Vanguard Industrials' beta coefficient measures the volatility of Vanguard mutual 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 Vanguard mutual fund's returns against your selected market. In other words, Vanguard Industrials's beta of 1.16 provides an investor with an approximation of how much risk Vanguard Industrials mutual fund can potentially add to one of your existing portfolios. Vanguard Industrials Index has low volatility with Treynor Ratio of 0.15, Maximum Drawdown of 5.88 and kurtosis of 3.59. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vanguard Industrials' mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vanguard Industrials' mutual 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 Vanguard Industrials Demand TrendCheck current 90 days Vanguard Industrials correlation with market (Dow Jones Industrial)Vanguard Beta |
Vanguard 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 | 0.99 |
It is essential to understand the difference between upside risk (as represented by Vanguard Industrials's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vanguard Industrials' daily returns or price. Since the actual investment returns on holding a position in vanguard mutual fund 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 Vanguard Industrials.
Vanguard Industrials Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Vanguard Industrials fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vanguard Industrials' price changes. Investors will then calculate the volatility of Vanguard Industrials' mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual 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 Vanguard Industrials' volatility:
Historical Volatility
This type of fund volatility measures Vanguard Industrials' fluctuations based on previous trends. It's commonly used to predict Vanguard Industrials' future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Vanguard Industrials' 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 Vanguard Industrials' 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. Vanguard Industrials 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.
Vanguard Industrials Projected Return Density Against Market
Assuming the 90 days horizon the mutual fund has the beta coefficient of 1.1583 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Vanguard Industrials 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 Vanguard Industrials or Vanguard 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 Vanguard Industrials' price will be affected by overall mutual 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 Vanguard 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.
Vanguard Industrials Index has an alpha of 0.0367, implying that it can generate a 0.0367 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Vanguard Industrials 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 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.Vanguard Industrials Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Vanguard Industrials is 561.79. The daily returns are distributed with a variance of 0.97 and standard deviation of 0.99. The mean deviation of Vanguard Industrials Index is currently at 0.71. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | 1.16 | |
σ | Overall volatility | 0.99 | |
Ir | Information ratio | 0.06 |
Vanguard Industrials Mutual Fund Return Volatility
Vanguard Industrials historical daily return volatility represents how much of Vanguard Industrials fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.9874% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vanguard Industrials Volatility
Volatility is a rate at which the price of Vanguard Industrials 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 Vanguard Industrials may increase or decrease. In other words, similar to Vanguard's beta indicator, it measures the risk of Vanguard Industrials and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vanguard Industrials 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 employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index Industrials 2550, an index made up of stocks of large, mid-size, and small U.S. companies within the industrials sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.
Vanguard Industrials' 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 Vanguard Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vanguard Industrials' price varies over time.
3 ways to utilize Vanguard Industrials' volatility to invest better
Higher Vanguard Industrials' fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vanguard Industrials 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. Vanguard Industrials 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 Vanguard Industrials investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vanguard Industrials' 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 Vanguard Industrials' fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vanguard Industrials Investment Opportunity
Vanguard Industrials Index has a volatility of 0.99 and is 1.29 times more volatile than Dow Jones Industrial. 8 percent of all equities and portfolios are less risky than Vanguard Industrials. You can use Vanguard Industrials Index to enhance the returns of your portfolios. The mutual fund experiences a large bullish trend. Check odds of Vanguard Industrials to be traded at $156.33 in 90 days.Almost no diversification
The correlation between Vanguard Industrials Index and DJI is 0.9 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Industrials Index and DJI in the same portfolio, assuming nothing else is changed.
Vanguard Industrials Additional Risk Indicators
The analysis of Vanguard Industrials' 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 Vanguard Industrials' investment and either accepting that risk or mitigating it. Along with some common measures of Vanguard Industrials mutual 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 | 0.1475 | |||
| Market Risk Adjusted Performance | 0.1625 | |||
| Mean Deviation | 0.7126 | |||
| Semi Deviation | 0.5836 | |||
| Downside Deviation | 0.8212 | |||
| Coefficient Of Variation | 527.74 | |||
| Standard Deviation | 0.9848 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Vanguard Industrials 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 Vanguard Industrials 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. Vanguard Industrials' 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, Vanguard Industrials' 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 Vanguard Industrials Index.
Other Information on Investing in Vanguard Mutual Fund
Vanguard Industrials financial ratios help investors to determine whether Vanguard Mutual 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 Vanguard with respect to the benefits of owning Vanguard Industrials security.
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |