Vaneck Cef Municipal Etf Volatility
| XMPT Etf | USD 22.37 0.11 0.49% |
Currently, VanEck CEF Municipal is very steady. VanEck CEF Municipal owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0156, which indicates the etf had a 0.0156% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for VanEck CEF Municipal, which you can use to evaluate the volatility of the etf. Please validate VanEck CEF's insignificant Risk Adjusted Performance, coefficient of variation of 42805.7, and Semi Deviation of 0.4967 to confirm if the risk estimate we provide is consistent with the expected return of 0.0074%. Key indicators related to VanEck CEF's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
VanEck CEF 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 VanEck daily returns, and it is calculated using variance and standard deviation. We also use VanEck's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of VanEck CEF volatility.
VanEck |
Downward market volatility can be a perfect environment for investors who play the long game with VanEck CEF. They may decide to buy additional shares of VanEck CEF at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with VanEck Etf
| 0.84 | HYD | VanEck High Yield | PairCorr |
| 0.89 | FMHI | First Trust Municipal | PairCorr |
| 0.79 | FLMI | Franklin Liberty Int | PairCorr |
| 0.81 | HYMU | BlackRock High Yield | PairCorr |
Moving against VanEck Etf
| 0.4 | MAAX | MAAX | PairCorr |
| 0.37 | MEME | Roundhill Investments | PairCorr |
| 0.37 | BTC | Grayscale Bitcoin Mini | PairCorr |
| 0.37 | IBIT | iShares Bitcoin Trust Aggressive Push | PairCorr |
| 0.36 | BTF | Valkyrie Bitcoin Strategy | PairCorr |
| 0.33 | ITWO | Proshares Russell 2000 Low Volatility | PairCorr |
| 0.33 | ETH | Grayscale Ethereum Mini | PairCorr |
| 0.32 | RSPY | Tuttle Capital Management | PairCorr |
VanEck CEF Market Sensitivity And Downside Risk
VanEck CEF's beta coefficient measures the volatility of VanEck 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 VanEck etf's returns against your selected market. In other words, VanEck CEF's beta of 0.0359 provides an investor with an approximation of how much risk VanEck CEF etf can potentially add to one of your existing portfolios. VanEck CEF Municipal exhibits very low volatility with skewness of -0.34 and kurtosis of -0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure VanEck CEF'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 VanEck CEF'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 VanEck CEF Municipal Demand TrendCheck current 90 days VanEck CEF correlation with market (Dow Jones Industrial)VanEck Beta |
VanEck 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 VanEck CEF's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of VanEck CEF's daily returns or price. Since the actual investment returns on holding a position in vaneck 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 VanEck CEF.
VanEck CEF Municipal Etf Volatility Analysis
Volatility refers to the frequency at which VanEck CEF etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with VanEck CEF's price changes. Investors will then calculate the volatility of VanEck CEF'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 VanEck CEF's volatility:
Historical Volatility
This type of etf volatility measures VanEck CEF's fluctuations based on previous trends. It's commonly used to predict VanEck CEF'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 VanEck CEF'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 VanEck CEF'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. VanEck CEF Municipal 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.
VanEck CEF Projected Return Density Against Market
Given the investment horizon of 90 days VanEck CEF has a beta of 0.0359 . This entails as returns on the market go up, VanEck CEF average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding VanEck CEF 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 VanEck CEF or VanEck 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 VanEck CEF'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 VanEck 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.
VanEck CEF 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 VanEck CEF 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.VanEck CEF Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of VanEck CEF is 6428.52. The daily returns are distributed with a variance of 0.23 and standard deviation of 0.48. The mean deviation of VanEck CEF Municipal is currently at 0.38. 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 | 0.04 | |
σ | Overall volatility | 0.48 | |
Ir | Information ratio | -0.23 |
VanEck CEF Etf Return Volatility
VanEck CEF historical daily return volatility represents how much of VanEck CEF etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The exchange-traded fund inherits 0.4768% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About VanEck CEF Volatility
Volatility is a rate at which the price of VanEck CEF 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 VanEck CEF may increase or decrease. In other words, similar to VanEck's beta indicator, it measures the risk of VanEck CEF and helps estimate the fluctuations that may happen in a short period of time. So if prices of VanEck CEF 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 normally invests at least 80 percent of its total assets in investments the income from which is exempt from U.S. federal income tax . Vaneck CEF is traded on BATS Exchange in the United States.
VanEck CEF'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 VanEck Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much VanEck CEF's price varies over time.
3 ways to utilize VanEck CEF's volatility to invest better
Higher VanEck CEF's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of VanEck CEF Municipal 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. VanEck CEF Municipal 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 VanEck CEF Municipal investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in VanEck CEF'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 VanEck CEF's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
VanEck CEF Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.77 and is 1.6 times more volatile than VanEck CEF Municipal. 4 percent of all equities and portfolios are less risky than VanEck CEF. You can use VanEck CEF Municipal to enhance the returns of your portfolios. The etf experiences a normal upward fluctuation. Check odds of VanEck CEF to be traded at $23.49 in 90 days.Significant diversification
The correlation between VanEck CEF Municipal and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding VanEck CEF Municipal and DJI in the same portfolio, assuming nothing else is changed.
VanEck CEF Additional Risk Indicators
The analysis of VanEck CEF'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 VanEck CEF's investment and either accepting that risk or mitigating it. Along with some common measures of VanEck CEF 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) | |||
| Market Risk Adjusted Performance | (0.24) | |||
| Mean Deviation | 0.3757 | |||
| Semi Deviation | 0.4967 | |||
| Downside Deviation | 0.523 | |||
| Coefficient Of Variation | 42805.7 | |||
| Standard Deviation | 0.4739 |
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.
VanEck CEF 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 VanEck CEF 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. VanEck CEF'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, VanEck CEF'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 VanEck CEF Municipal.
When determining whether VanEck CEF Municipal is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if VanEck Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Vaneck Cef Municipal Etf. Highlighted below are key reports to facilitate an investment decision about Vaneck Cef Municipal Etf: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in VanEck CEF Municipal. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
The market value of VanEck CEF Municipal is measured differently than its book value, which is the value of VanEck that is recorded on the company's balance sheet. Investors also form their own opinion of VanEck CEF's value that differs from its market value or its book value, called intrinsic value, which is VanEck CEF'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 VanEck CEF's market value can be influenced by many factors that don't directly affect VanEck CEF'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 VanEck CEF's value and its price as these two are different measures arrived at by different means. Investors typically determine if VanEck CEF is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VanEck CEF'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.