Volatility refers to how quickly and drastically something can change. It is often used to describe how unpredictable or unstable a situation or market can be.
Full definition
The fund's standard deviation, a measure of
volatility of returns, was about 0.5 % higher than that of the reference ETF portfolio.
The case in point for our purposes: seeking to reduce the impact of market
volatility in an investment portfolio.
The higher
price volatility of small caps is evident at both portfolio and stock - specific levels.
These types of funds can experience
higher volatility in market price compared to fixed income securities due to the underlying management of the portfolio and investment objective stated in a fund's prospectus.
Could it be that we are in the process of learning things about investing that will someday permit us to look at price
volatility as a thing of the past?
The higher the duration of a bond or fund the higher the potential
for volatility in both directions when rates move.
I know that one should focus on lower
volatility stocks when having longer hold periods.
The fund's investment objective is long - term capital growth with
reduced volatility over time.
There have been a number of articles
on volatility as an asset class, but I am going to take a different approach to the topic.
These events typically yield
more volatility in stocks, which allows for this type of trading strategy to pay off in the short term.
It believes it can generate higher returns with
less volatility by holding 15 - year mortgage - backed securities, which are less sensitive to interest rates than 30 - year mortgages.
Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price
volatility by holding them until maturity is not possible.
However, by the time a portfolio has twenty or so holdings, the incremental reductions in
portfolio volatility from new holdings is very small.
Given the
recent volatility of natural gas prices, the stability of wind power prices is particularly appealing.
Kind of like equities vs. bonds, you accept short
term volatility for a higher long term return.
In summary, its
extreme volatility makes bitcoin an unreliable store of value, even for a single day.
The best approach
when volatility gets high is to not panic; don't be tempted to buy on the dips, because finding the bottom is very difficult.
And that gets borne out by the
greater volatility of markets close to open, than open to close.
While the Canadian market has seen more
volatility over the last couple of years in large part due to falling energy prices, it's still creating record highs.
Even with low interest rates, bonds and preferred shares also protect the portfolio during periods of higher
equity volatility.
Because of their potential longer - term benefits, it's worth considering
minimum volatility funds as core holdings.
Market
volatility returned with a vengeance over the last three months, with most asset classes providing low to negative returns.
I've read a little about low
volatility ETFs but did not know everything you had shared.
Notes: The chart shows
expected volatility based on current index weights and a constant - weighted 201 months of history.
Importantly, while that was taking place the last time we
saw volatility spike like that, you know, we were facing recession — global recession.
Where we are concerned
about volatility risks in global equity, we can focus exposure on stocks that exhibit the «quality» factor.
Moreover, when market
volatility rises, standard risk assessment models will signal that a market - maker's inventory has become riskier.
For future option prices, one assumes an implied
volatility at a later date to calculate a possible price.
Because of their potential longer - term benefits, it's worth considering minimum
volatility funds as core holdings.
Critics say fixed indexed annuities already protect
against volatility because they can not drop below a zero percent return.
Bitcoin prices experienced
significant volatility for much of this week, calming down during the last few sessions.
This example clearly demonstrates that exchange
rates volatility increases uncertainty and complexity for an investor making cross border securities trades.
This is quite helpful, especially if you've never heard of a «
historical volatility index limit» and wouldn't know what it was even if you had.
Indeed,
while volatility on equity markets has been severe, most European equity indexes rose strongly over the balance of this year.
Recent price increases and a high price
volatility cause severe planning insecurity.
Historically, such a change would often result in a reduction of
overall volatility without a reduction in return.
It now predicts that the Russian economy will contract by 0.7 percent in 2015, amid
continued volatility in oil prices.
Traditionally, short - term
volatility does not spill over into the real economy.
Phrases with «volatility»