SPDR Aggregate Etf Volatility

SPAB
 Etf
  

USD 24.75  0.13  0.52%   

SPDR Aggregate Bond owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.2, which indicates the etf had -0.2% of return per unit of volatility over the last 3 months. Macroaxis approach towards measuring the risk of any etf is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. SPDR Aggregate Bond exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate SPDR Aggregate risk adjusted performance of (0.21), and Coefficient Of Variation of (586.64) to confirm the risk estimate we provide.
  
SPDR Aggregate 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 SPDR Aggregate daily returns, and it is calculated using variance and standard deviation. We also use SPDR Aggregate's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SPDR Aggregate volatility.

720 Days Market Risk

Very steady

Chance of Distress

Below Average

720 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as SPDR Aggregate can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of SPDR Aggregate at lower prices. For example, an investor can purchase SPDR Aggregate stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of SPDR Aggregate's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with SPDR Aggregate

+1.0BNDTotal Bond MarketPairCorr
+1.0AGGUS Aggregate BondPairCorr
+1.0BIVInterm Term BondPairCorr
+1.0EAGGIshares ESG USPairCorr
+1.0FLCBFranklin LibertyPairCorr
+0.99UITBUsaa Core IntermediaPairCorr

SPDR Aggregate Market Sensitivity And Downside Risk

SPDR Aggregate's beta coefficient measures the volatility of SPDR Aggregate etf compared to the systematic risk of the entire stock 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 SPDR Aggregate etf's returns against your selected market. In other words, SPDR Aggregate's beta of 0.13 provides an investor with an approximation of how much risk SPDR Aggregate etf can potentially add to one of your existing portfolios.
SPDR Aggregate Bond exhibits very low volatility with skewness of -0.26 and kurtosis of -0.22. However, we advise investors to further study SPDR Aggregate Bond technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure SPDR Aggregate'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 SPDR Aggregate'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 stocks as prices fall.
3 Months Beta |Analyze SPDR Aggregate Bond Demand Trend
Check current 90 days SPDR Aggregate correlation with market (DOW)

SPDR Aggregate Beta

    
  0.13  
SPDR Aggregate standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

    
  0.47  
It is essential to understand the difference between upside risk (as represented by SPDR Aggregate's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SPDR Aggregate's daily returns or price. Since the actual investment returns on holding a position in spdr aggregate 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 SPDR Aggregate.

Using SPDR Aggregate Put Option to Manage Risk

Put options written on SPDR Aggregate grant holders of the option the right to sell a specified amount of SPDR Aggregate at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of SPDR Aggregate Etf cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge SPDR Aggregate's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding SPDR Aggregate will be realized, the loss incurred will be offset by the profits made with the option trade.

SPDR Aggregate's PUT expiring on 2022-10-21

   Profit   
Share
       SPDR Aggregate Price At Expiration  

SPDR Aggregate Bond Etf Volatility Analysis

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

Historical Volatility

This type of etf volatility measures SPDR Aggregate's fluctuations based on previous trends. It's commonly used to predict SPDR Aggregate'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 SPDR Aggregate'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 SPDR Aggregate'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. Developed by Larry Williams, the Weighted Close is the average of SPDR Aggregate Bond 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 SPDR Aggregate closing price as input.
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SPDR Aggregate Projected Return Density Against Market

Given the investment horizon of 90 days SPDR Aggregate has a beta of 0.1346 . This usually implies as returns on the market go up, SPDR Aggregate average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding SPDR Aggregate Bond 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 SPDR Aggregate or SPDR State Street Global Advisors 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 SPDR Aggregate'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 SPDR Aggregate 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.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. SPDR Aggregate Bond is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
SPDR Aggregate's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how spdr aggregate etf'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 SPDR Aggregate Price Volatility?

Several factors can influence a Etf'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.

SPDR Aggregate Etf Risk Measures

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 SPDR Aggregate or SPDR State Street Global Advisors 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 SPDR Aggregate'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 SPDR Aggregate 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. Given the investment horizon of 90 days the coefficient of variation of SPDR Aggregate is -512.02. The daily returns are distributed with a variance of 0.22 and standard deviation of 0.47. The mean deviation of SPDR Aggregate Bond is currently at 0.38. For similar time horizon, the selected benchmark (DOW) has volatility of 1.15
α
Alpha over DOW
-0.08
β
Beta against DOW0.13
σ
Overall volatility
0.47
Ir
Information ratio -0.03

SPDR Aggregate Etf Return Volatility

SPDR Aggregate historical daily return volatility represents how much of SPDR Aggregate etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 0.4696% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1057% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About SPDR Aggregate Volatility

Volatility is a rate at which the price of SPDR Aggregate 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 SPDR Aggregate may increase or decrease. In other words, similar to SPDR Aggregate's beta indicator, it measures the risk of SPDR Aggregate and helps estimate the fluctuations that may happen in a short period of time. So if prices of SPDR Aggregate 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 generally invests substantially all, but at least 80, of its total assets in the securities comprising the index and in securities that the Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the index. SPDR Aggregate is traded on NYSEArca Exchange in the United States.

SPDR Aggregate Investment Opportunity

DOW has a standard deviation of returns of 1.11 and is 2.36 times more volatile than SPDR Aggregate Bond. of all equities and portfolios are less risky than SPDR Aggregate. Compared to the overall equity markets, volatility of historical daily returns of SPDR Aggregate Bond is lower than 4 () of all global equities and portfolios over the last 90 days. Use SPDR Aggregate Bond to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The etf experiences a moderate downward daily trend and can be a good diversifier. Check odds of SPDR Aggregate to be traded at $24.26 in 90 days.

Weak diversification

The correlation between SPDR Aggregate Bond and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Aggregate Bond and DJI in the same portfolio, assuming nothing else is changed.

SPDR Aggregate Additional Risk Indicators

The analysis of SPDR Aggregate'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 SPDR Aggregate's investment and either accepting that risk or mitigating it. Along with some common measures of SPDR Aggregate 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.
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.

SPDR Aggregate 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 SPDR Aggregate 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. SPDR Aggregate'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, SPDR Aggregate'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 SPDR Aggregate Bond.
Additionally, take a look at World Market Map. Note that the SPDR Aggregate Bond information on this page should be used as a complementary analysis to other SPDR Aggregate'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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The market value of SPDR Aggregate Bond is measured differently than its book value, which is the value of SPDR Aggregate that is recorded on the company's balance sheet. Investors also form their own opinion of SPDR Aggregate's value that differs from its market value or its book value, called intrinsic value, which is SPDR Aggregate'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 SPDR Aggregate's market value can be influenced by many factors that don't directly affect SPDR Aggregate'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 SPDR Aggregate's value and its price as these two are different measures arrived at by different means. Investors typically determine SPDR Aggregate value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SPDR Aggregate'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.