Gamco Natural Resources Fund Volatility
| XGNTX Fund | USD 6.35 0.03 0.47% |
We consider Gamco Natural not too volatile. Gamco Natural Resources holds Efficiency (Sharpe) Ratio of 0.18, which attests that the entity had a 0.18% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Gamco Natural Resources, which you can use to evaluate the volatility of the entity. Please check out Gamco Natural's Market Risk Adjusted Performance of (1.32), risk adjusted performance of 0.1469, and Downside Deviation of 0.9431 to validate if the risk estimate we provide is consistent with the expected return of 0.12%.
Gamco |
Gamco Natural 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 Gamco daily returns, and it is calculated using variance and standard deviation. We also use Gamco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gamco Natural volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Gamco Natural 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 Gamco Natural at lower prices. For example, an investor can purchase Gamco 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 Gamco Natural'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 against Gamco Mutual Fund
| 0.76 | XNXJX | Nuveen New Jersey | PairCorr |
| 0.68 | XPPRX | Voya Prime Rate | PairCorr |
| 0.6 | XDSMX | Dreyfus Strategic | PairCorr |
Gamco Natural Market Sensitivity And Downside Risk
Gamco Natural's beta coefficient measures the volatility of Gamco 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 Gamco mutual fund's returns against your selected market. In other words, Gamco Natural's beta of -0.12 provides an investor with an approximation of how much risk Gamco Natural mutual fund can potentially add to one of your existing portfolios. Gamco Natural Resources has low volatility with Treynor Ratio of -1.33, Maximum Drawdown of 4.03 and kurtosis of 1.72. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gamco Natural's 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 Gamco Natural's 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 Gamco Natural Resources Demand TrendCheck current 90 days Gamco Natural correlation with market (NYSE Composite)Gamco Beta |
Gamco 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 | 0.71 |
It is essential to understand the difference between upside risk (as represented by Gamco Natural's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gamco Natural's daily returns or price. Since the actual investment returns on holding a position in gamco 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 Gamco Natural.
Gamco Natural Resources Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Gamco Natural fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gamco Natural's price changes. Investors will then calculate the volatility of Gamco Natural's 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 Gamco Natural's volatility:
Historical Volatility
This type of fund volatility measures Gamco Natural's fluctuations based on previous trends. It's commonly used to predict Gamco Natural's 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 Gamco Natural'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 Gamco Natural'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. Gamco Natural Resources 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.
Gamco Natural Projected Return Density Against Market
Assuming the 90 days horizon Gamco Natural Resources has a beta of -0.1199 . This entails as returns on the benchmark increase, returns on holding Gamco Natural are expected to decrease at a much lower rate. During a bear market, however, Gamco Natural Resources is likely to outperform the market.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 Gamco Natural or Derivative Income 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 Gamco Natural's 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 Gamco 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.
Gamco Natural Resources has an alpha of 0.163, implying that it can generate a 0.16 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Gamco Natural 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.Gamco Natural Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Gamco Natural is 571.06. The daily returns are distributed with a variance of 0.5 and standard deviation of 0.71. The mean deviation of Gamco Natural Resources is currently at 0.51. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.16 | |
β | Beta against NYSE Composite | -0.12 | |
σ | Overall volatility | 0.71 | |
Ir | Information ratio | 0.18 |
Gamco Natural Mutual Fund Return Volatility
Gamco Natural historical daily return volatility represents how much of Gamco Natural fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.7072% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6297% volatility on return distribution over the 90 days horizon. Performance |
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