Vanguard Canadian Short Etf Volatility
| VSB Etf | CAD 23.53 0.02 0.09% |
As of now, Vanguard Etf is very steady. Vanguard Canadian Short owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.15, which indicates the etf had a 0.15 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Vanguard Canadian Short, which you can use to evaluate the volatility of the etf. Please validate Vanguard Canadian's Downside Deviation of 0.1474, standard deviation of 0.0916, and Risk Adjusted Performance of 0.0076 to confirm if the risk estimate we provide is consistent with the expected return of 0.014%.
Sharpe Ratio = 0.1503
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Based on monthly moving average Vanguard Canadian is performing at about 11% 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 Vanguard Canadian by adding it to a well-diversified portfolio.
Key indicators related to Vanguard Canadian's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Vanguard Canadian 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 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 Canadian volatility.
Vanguard |
Downward market volatility can be a perfect environment for investors who play the long game with Vanguard Canadian. They may decide to buy additional shares of Vanguard Canadian at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Vanguard Etf
| 0.99 | XSB | iShares Canadian Short | PairCorr |
| 0.96 | XSH | iShares Core Canadian | PairCorr |
| 0.97 | ZCS | BMO Short Corporate | PairCorr |
| 0.96 | CBO | iShares 1 5 | PairCorr |
| 0.97 | PSB | Invesco 1 5 | PairCorr |
| 0.69 | XFR | iShares Floating Rate | PairCorr |
| 0.97 | CLF | iShares 1 5 | PairCorr |
| 0.68 | ZFS | BMO Short Federal | PairCorr |
| 0.62 | RAAA | Corton Enhanced Income | PairCorr |
| 0.95 | TERM | Manulife Smart Short | PairCorr |
| 0.63 | ATSX | Accelerate Canadian Long | PairCorr |
| 0.84 | NXF | First Asset Energy | PairCorr |
| 0.71 | ZEO | BMO Equal Weight | PairCorr |
| 0.71 | GCTB | Guardian Ultra Short | PairCorr |
| 0.8 | EIT-UN | Canoe EIT Income | PairCorr |
| 0.79 | ZGI | BMO Global Infrastructure | PairCorr |
| 0.66 | ZMID | BMO SP Mid | PairCorr |
Moving against Vanguard Etf
| 0.54 | ZST | BMO Ultra Short | PairCorr |
| 0.46 | CBCX | CI Galaxy Blockchain | PairCorr |
| 0.45 | HBLK | Blockchain Technologies | PairCorr |
Vanguard Canadian Market Sensitivity And Downside Risk
Vanguard Canadian's beta coefficient measures the volatility of Vanguard 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 Vanguard etf's returns against your selected market. In other words, Vanguard Canadian's beta of 0.0125 provides an investor with an approximation of how much risk Vanguard Canadian etf can potentially add to one of your existing portfolios. Vanguard Canadian Short exhibits very low volatility with skewness of -1.93 and kurtosis of 7.68. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vanguard Canadian's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vanguard Canadian's 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 Vanguard Canadian Short Demand TrendCheck current 90 days Vanguard Canadian correlation with market (Dow Jones Industrial)Vanguard Canadian Volatility and Downside Risk
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.
Vanguard Canadian Short Etf Volatility Analysis
Volatility refers to the frequency at which Vanguard Canadian etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vanguard Canadian's price changes. Investors will then calculate the volatility of Vanguard Canadian's 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 Vanguard Canadian's volatility:
Historical Volatility
This type of etf volatility measures Vanguard Canadian's fluctuations based on previous trends. It's commonly used to predict Vanguard Canadian's 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 Vanguard Canadian's 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 Vanguard Canadian'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. Vanguard Canadian Short 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 Canadian Projected Return Density Against Market
Assuming the 90 days trading horizon Vanguard Canadian has a beta of 0.0125 . This entails as returns on the market go up, Vanguard Canadian average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Vanguard Canadian Short 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 Vanguard Canadian or Vanguard Investments Canada Inc 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 Canadian's 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 Vanguard 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.
Predicted Return Density |
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What Drives a Vanguard Canadian 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 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.Vanguard Canadian Etf Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Vanguard Canadian is 665.16. The daily returns are distributed with a variance of 0.01 and standard deviation of 0.09. The mean deviation of Vanguard Canadian Short is currently at 0.06. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | -0.001 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 0.09 | |
Ir | Information ratio | -0.66 |
Vanguard Canadian Etf Return Volatility
Vanguard Canadian historical daily return volatility represents how much of Vanguard Canadian etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF assumes 0.0933% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7615% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
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
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Vanguard Canadian Constituents Risk-Adjusted Indicators
There is a big difference between Vanguard Etf performing well and Vanguard Canadian ETF 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 Vanguard Canadian'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 | ||
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| VSC | 0.07 | 0.00 | (0.42) | 0.19 | 0.00 | 0.17 | 0.54 | |||
| VUS | 0.56 | (0.04) | (0.08) | (0.01) | 0.79 | 1.17 | 3.79 | |||
| TQCD | 0.51 | 0.14 | 0.11 | 0.47 | 0.57 | 1.06 | 3.61 | |||
| FCIQ | 0.70 | (0.05) | 0.00 | (0.05) | 0.00 | 1.28 | 4.25 | |||
| MUB | 0.18 | (0.01) | (0.24) | (0.05) | 0.23 | 0.39 | 1.04 | |||
| QQC | 0.72 | (0.13) | 0.00 | (0.15) | 0.00 | 1.39 | 4.71 | |||
| BND | 0.11 | 0.00 | (0.29) | 0.13 | 0.07 | 0.22 | 0.73 | |||
| HHL | 0.62 | 0.01 | (0.03) | 0.08 | 0.64 | 1.63 | 3.89 | |||
| XEG | 1.12 | 0.27 | 0.15 | 11.79 | 1.13 | 2.53 | 5.88 | |||
| ZUQ | 0.57 | (0.04) | (0.10) | (0.01) | 0.64 | 1.37 | 3.01 |
About Vanguard Canadian Volatility
Volatility is a rate at which the price of Vanguard Canadian 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 Canadian may increase or decrease. In other words, similar to Vanguard's beta indicator, it measures the risk of Vanguard Canadian and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vanguard Canadian 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 ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad Canadian bond index with a short-term dollar weighted average maturity. VANGUARD CDN is traded on Toronto Stock Exchange in Canada.
Vanguard Canadian'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 Vanguard Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vanguard Canadian's price varies over time.
3 ways to utilize Vanguard Canadian's volatility to invest better
Higher Vanguard Canadian's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vanguard Canadian Short 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. Vanguard Canadian Short 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 Vanguard Canadian Short investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vanguard Canadian's 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 Vanguard Canadian's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vanguard Canadian Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.76 and is 8.44 times more volatile than Vanguard Canadian Short. 0 percent of all equities and portfolios are less risky than Vanguard Canadian. You can use Vanguard Canadian Short to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of Vanguard Canadian to be traded at C$24.71 in 90 days.Very weak diversification
The correlation between Vanguard Canadian Short and DJI is 0.57 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Canadian Short and DJI in the same portfolio, assuming nothing else is changed.
Vanguard Canadian Additional Risk Indicators
The analysis of Vanguard Canadian'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 Vanguard Canadian's investment and either accepting that risk or mitigating it. Along with some common measures of Vanguard Canadian 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 | 0.0076 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 0.0608 | |||
| Downside Deviation | 0.1474 | |||
| Coefficient Of Variation | 940.81 | |||
| Standard Deviation | 0.0916 | |||
| Variance | 0.0084 |
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.
Vanguard Canadian 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 Canadian 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 Canadian'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, Vanguard Canadian'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 Vanguard Canadian Short.
Other Information on Investing in Vanguard Etf
Vanguard Canadian financial ratios help investors to determine whether Vanguard Etf 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 Canadian security.