Nasdaq Index Volatility

IXIC -  USA Index  

 11,355  33.88  0.30%

Nasdaq has Sharpe Ratio of -0.0724, which conveys that the entity had -0.0724% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any index is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Nasdaq exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away.
  
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Nasdaq Index 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 Nasdaq daily returns, and it is calculated using variance and standard deviation. We also use Nasdaq's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Nasdaq volatility.

Nasdaq Index Volatility Analysis

Volatility refers to the frequency at which Nasdaq stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Nasdaq's price changes. Investors will then calculate the volatility of Nasdaq'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 Nasdaq's volatility:

Historical Volatility

This type of stock volatility measures Nasdaq's fluctuations based on previous trends. It's commonly used to predict Nasdaq'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 Nasdaq's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Nasdaq high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Nasdaq closing price as input.
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Nasdaq Projected Return Density Against Market

 Predicted Return Density 
      Returns 
Nasdaq's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Nasdaq stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

About Nasdaq Volatility

Volatility is a rate at which the price of Nasdaq 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 Nasdaq may increase or decrease. In other words, similar to Nasdaq's beta indicator, it measures the risk of Nasdaq and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nasdaq 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.

Nasdaq Investment Opportunity

Nasdaq has a volatility of 2.95 and is 2.2 times more volatile than DOW. 25  of all equities and portfolios are less risky than Nasdaq. Compared to the overall equity markets, volatility of historical daily returns of Nasdaq is lower than 25 () of all global equities and portfolios over the last 90 days.

Nasdaq Additional Risk Indicators

The analysis of Nasdaq'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 Nasdaq's investment and either accepting that risk or mitigating it. Along with some common measures of Nasdaq stock 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(0.13)
Mean Deviation2.13
Coefficient Of Variation(1,016)
Standard Deviation2.92
Variance8.55
Information Ratio(0.044019)
Total Risk Alpha0.0694
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Nasdaq 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.
Applied Materials vs. Nasdaq
Veeco Instrument vs. Nasdaq
Servicenow vs. Nasdaq
Citigroup vs. Nasdaq
Zendesk vs. Nasdaq
Ford vs. Nasdaq
Apple vs. Nasdaq
International Business vs. Nasdaq
Vmware vs. Nasdaq
SP 500 vs. Nasdaq
Salesforce vs. Nasdaq
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 Nasdaq 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. Nasdaq'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, Nasdaq'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 Nasdaq.
Check out Your Current Watchlist. Note that the Nasdaq information on this page should be used as a complementary analysis to other Nasdaq's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Tools for Nasdaq Index

When running Nasdaq price analysis, check to measure Nasdaq's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nasdaq is operating at the current time. Most of Nasdaq's value examination focuses on studying past and present price action to predict the probability of Nasdaq's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nasdaq's price. Additionally, you may evaluate how the addition of Nasdaq to your portfolios can decrease your overall portfolio volatility.
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