Western Assets Municipal Volatility
| XMNPXDelisted Fund | USD 13.83 0.00 0.00% |
We have found twenty-five technical indicators for Western Assets Municipal, which you can use to evaluate the volatility of the fund. Please check out Western Assets' Mean Deviation of 0.2119, downside deviation of 0.4564, and Market Risk Adjusted Performance of (0.61) to validate if the risk estimate we provide is consistent with the expected return of 0.0%.
Western |
Western Assets 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 Western daily returns, and it is calculated using variance and standard deviation. We also use Western's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Western Assets volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Western Assets. They may decide to buy additional shares of Western Assets at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against Western Mutual Fund
| 0.4 | CAT | Caterpillar Fiscal Year End 3rd of February 2025 | PairCorr |
| 0.36 | CVX | Chevron Corp Sell-off Trend | PairCorr |
| 0.34 | INTC | Intel Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.31 | HPQ | HP Inc | PairCorr |
Western Assets Market Sensitivity And Downside Risk
Western Assets' beta coefficient measures the volatility of Western 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 Western mutual fund's returns against your selected market. In other words, Western Assets's beta of 0.0154 provides an investor with an approximation of how much risk Western Assets mutual fund can potentially add to one of your existing portfolios. Western Assets Municipal exhibits very low volatility with skewness of -1.21 and kurtosis of 3.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Western Assets' 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 Western Assets' 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 Western Assets Municipal Demand TrendCheck current 90 days Western Assets correlation with market (Dow Jones Industrial)Western Beta |
Western 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 | 0.0 |
It is essential to understand the difference between upside risk (as represented by Western Assets's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Western Assets' daily returns or price. Since the actual investment returns on holding a position in western 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 Western Assets.
Western Assets Municipal Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Western Assets fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Western Assets' price changes. Investors will then calculate the volatility of Western Assets' 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 Western Assets' volatility:
Historical Volatility
This type of fund volatility measures Western Assets' fluctuations based on previous trends. It's commonly used to predict Western Assets' 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 Western Assets' 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 Western Assets' to be redeemed at a future date.Transformation |
We are not able to run technical analysis function on this symbol. We either do not have that equity or its historical data is not available at this time. Please try again later.
Western Assets Projected Return Density Against Market
Assuming the 90 days horizon Western Assets has a beta of 0.0154 . This entails as returns on the market go up, Western Assets average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Western Assets Municipal 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 Western Assets or Western 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 Western Assets' 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 Western 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.
Western Assets Municipal 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 a Western Assets 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.Western Assets Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Western Assets is 0.0. The daily returns are distributed with a variance of 0.0 and standard deviation of 0.0. The mean deviation of Western Assets Municipal is currently at 0.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.01 | |
β | Beta against Dow Jones | 0.02 | |
σ | Overall volatility | 0.00 | |
Ir | Information ratio | -0.43 |
Western Assets Mutual Fund Return Volatility
Western Assets historical daily return volatility represents how much of Western Assets fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.0% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Western Assets Volatility
Volatility is a rate at which the price of Western Assets 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 Western Assets may increase or decrease. In other words, similar to Western's beta indicator, it measures the risk of Western Assets and helps estimate the fluctuations that may happen in a short period of time. So if prices of Western Assets 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.3 ways to utilize Western Assets' volatility to invest better
Higher Western Assets' fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Western Assets Municipal 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. Western Assets Municipal 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 Western Assets Municipal investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Western Assets' 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 Western Assets' fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Western Assets Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.75 and is 9.223372036854776E16 times more volatile than Western Assets Municipal. 0 percent of all equities and portfolios are less risky than Western Assets. You can use Western Assets Municipal to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Western Assets to be traded at $13.69 in 90 days.Significant diversification
The correlation between Western Assets Municipal and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Municipal and DJI in the same portfolio, assuming nothing else is changed.
Western Assets Additional Risk Indicators
The analysis of Western Assets' 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 Western Assets' investment and either accepting that risk or mitigating it. Along with some common measures of Western Assets 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.61) | |||
| Mean Deviation | 0.2119 | |||
| Semi Deviation | 0.3442 | |||
| Downside Deviation | 0.4564 | |||
| Coefficient Of Variation | 63323.85 | |||
| Standard Deviation | 0.3199 |
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.
Western Assets 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 Western Assets 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. Western Assets' 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, Western Assets' 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 Western Assets Municipal.
Check out Your Current Watchlist to better understand how to build diversified portfolios. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Consideration for investing in Western Mutual Fund
If you are still planning to invest in Western Assets Municipal check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Western Assets' history and understand the potential risks before investing.
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |