Aberdeen Income Credit Fund Volatility
| ACP Fund | USD 6.76 0.03 0.45% |
We consider Aberdeen Income very steady. Aberdeen Income Credit secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the fund had a 0.11% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for Aberdeen Income Credit, which you can use to evaluate the volatility of the entity. Please confirm Aberdeen Income's risk adjusted performance of 0.0644, and Mean Deviation of 0.5209 to double-check if the risk estimate we provide is consistent with the expected return of 0.0754%. Key indicators related to Aberdeen Income's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Aberdeen Income 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 Aberdeen daily returns, and it is calculated using variance and standard deviation. We also use Aberdeen's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Aberdeen Income volatility.
Aberdeen |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Aberdeen Income 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 Aberdeen Income at lower prices. For example, an investor can purchase Aberdeen 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 Aberdeen Income'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 Aberdeen Fund
Aberdeen Income Market Sensitivity And Downside Risk
Aberdeen Income's beta coefficient measures the volatility of Aberdeen 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 Aberdeen fund's returns against your selected market. In other words, Aberdeen Income's beta of 0.16 provides an investor with an approximation of how much risk Aberdeen Income fund can potentially add to one of your existing portfolios. Aberdeen Income Credit exhibits relatively low volatility with skewness of -0.12 and kurtosis of 0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aberdeen Income's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aberdeen Income's 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 Aberdeen Income Credit Demand TrendCheck current 90 days Aberdeen Income correlation with market (NYSE Composite)Aberdeen Beta |
Aberdeen 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 | 0.66 |
It is essential to understand the difference between upside risk (as represented by Aberdeen Income's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Aberdeen Income's daily returns or price. Since the actual investment returns on holding a position in aberdeen 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 Aberdeen Income.
Aberdeen Income Credit Fund Volatility Analysis
Volatility refers to the frequency at which Aberdeen Income fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Aberdeen Income's price changes. Investors will then calculate the volatility of Aberdeen Income's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A 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 Aberdeen Income's volatility:
Historical Volatility
This type of fund volatility measures Aberdeen Income's fluctuations based on previous trends. It's commonly used to predict Aberdeen Income's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Aberdeen Income's 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 Aberdeen Income'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. Aberdeen Income Credit 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.
Aberdeen Income Projected Return Density Against Market
Considering the 90-day investment horizon Aberdeen Income has a beta of 0.1589 . This suggests as returns on the market go up, Aberdeen Income average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Aberdeen Income Credit 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 Aberdeen Income or Financial Services 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 Aberdeen Income's price will be affected by overall 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 Aberdeen 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.
Aberdeen Income Credit has an alpha of 0.0463, implying that it can generate a 0.0463 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Aberdeen Income 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.Aberdeen Income Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Aberdeen Income is 871.87. The daily returns are distributed with a variance of 0.43 and standard deviation of 0.66. The mean deviation of Aberdeen Income Credit is currently at 0.51. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.05 | |
β | Beta against NYSE Composite | 0.16 | |
σ | Overall volatility | 0.66 | |
Ir | Information ratio | -0.03 |
Aberdeen Income Fund Return Volatility
Aberdeen Income historical daily return volatility represents how much of Aberdeen Income fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.6571% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6309% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Aberdeen Income Volatility
Volatility is a rate at which the price of Aberdeen Income 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 Aberdeen Income may increase or decrease. In other words, similar to Aberdeen's beta indicator, it measures the risk of Aberdeen Income and helps estimate the fluctuations that may happen in a short period of time. So if prices of Aberdeen Income 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.Abrdn Income Credit Strategies Fund is a closed-ended fixed income fund launched and managed by Aberdeen Asset Managers Limited. Abrdn Income Credit Strategies Fund was formed on October 12, 2010 and is domiciled in the United States. Abrnd Income is traded on New York Stock Exchange in the United States.
Aberdeen Income'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 Aberdeen Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Aberdeen Income's price varies over time.
3 ways to utilize Aberdeen Income's volatility to invest better
Higher Aberdeen Income's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Aberdeen Income Credit 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. Aberdeen Income Credit 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 Aberdeen Income Credit investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Aberdeen Income's 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 Aberdeen Income's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Aberdeen Income Investment Opportunity
Aberdeen Income Credit has a volatility of 0.66 and is 1.05 times more volatile than NYSE Composite. 5 percent of all equities and portfolios are less risky than Aberdeen Income. You can use Aberdeen Income Credit to enhance the returns of your portfolios. The fund experiences a normal upward fluctuation. Check odds of Aberdeen Income to be traded at $7.1 in 90 days.Average diversification
The correlation between Aberdeen Income Credit and NYA is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Income Credit and NYA in the same portfolio, assuming nothing else is changed.
Aberdeen Income Additional Risk Indicators
The analysis of Aberdeen Income'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 Aberdeen Income's investment and either accepting that risk or mitigating it. Along with some common measures of Aberdeen Income 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 | 0.0644 | |||
| Market Risk Adjusted Performance | 0.3791 | |||
| Mean Deviation | 0.5209 | |||
| Semi Deviation | 0.5704 | |||
| Downside Deviation | 0.6982 | |||
| Coefficient Of Variation | 972.35 | |||
| Standard Deviation | 0.6675 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Aberdeen Income 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.
| GM vs. Aberdeen Income | ||
| Walker Dunlop vs. Aberdeen Income | ||
| Salesforce vs. Aberdeen Income | ||
| Microsoft vs. Aberdeen Income | ||
| Dupont De vs. Aberdeen Income | ||
| Ford vs. Aberdeen Income | ||
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 Aberdeen Income 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. Aberdeen Income'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, Aberdeen Income'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 Aberdeen Income Credit.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aberdeen Income Credit. Also, note that the market value of any fund could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. Note that the Aberdeen Income Credit information on this page should be used as a complementary analysis to other Aberdeen Income'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 the Transaction History module to view history of all your transactions and understand their impact on performance.