Basic Materials Ultrasector Fund Volatility

BMPIX Fund  USD 115.49  -2.76  -2.33%   
Recent trading patterns suggest Basic Materials Ultrasector maintains low price volatility over the last 3 months. Basic Materials Ultrasector posts a Sharpe ratio of 0.0583, showing reward per unit of risk over the last 3 months. This risk assessment is based on 26 technical indicators.

Sharpe Ratio = 0.0583

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Basic Materials Ultrasector's financial profile includes a Market Risk Adjusted Performance of 0.1%, a Risk of 1.75, and a Risk Adjusted Performance of 0.1%. Moving average data indicates BASIC MATERIALS is positioned near 4% of its recent return envelope. Risk-adjusted contribution varies depending on portfolio structure.
Key indicators related to BASIC MATERIALS's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Volatility analysis for BASIC MATERIALS draws on both historical price data and forward-looking implied volatility from the options market. Together these measures provide a comprehensive view of BASIC MATERIALS's risk profile.
  

Volatility Strategy

Observed trading dispersion in Basic Materials Ultrasector can affect long-term allocation structure. Current statistical measures show total volatility near 1.75% with a beta coefficient of 1.38, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of 0.0583, evaluates return per unit of total risk. An alpha value of 0.26 reflects performance relative to systematic market exposure. Expected return estimates near 0.1% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Volatility effects depend on underlying market structure and exposure characteristics.

Main indicators related to BASIC MATERIALS's market risk premium analysis include:

 Beta
1.38
 Alpha
0.26
 Risk
1.75
 Sharpe Ratio
0.0583
 Expected Return
0.1

Moving together with BASIC Mutual Fund

  0.86UJPIX Ultrajapan ProfundPairCorr
  0.75MLPSX Mid Cap ValuePairCorr
  0.63GVPIX Us Government PlusPairCorr
  0.78MLPIX Mid Cap ValuePairCorr
  0.7ENPIX Oil Gas UltrasectorPairCorr
  0.8OEPSX Oil Equipment ServicesPairCorr
  0.87SVPIX Small Cap ValuePairCorr

Moving against BASIC Mutual Fund

  0.95UKPSX Ultrashort Japan ProfundPairCorr
  0.95UKPIX Ultrashort Japan ProfundPairCorr
  0.9UIPIX Ultrashort Mid CapPairCorr
  0.9UIPSX Ultrashort Mid CapPairCorr
  0.86SRPIX Short Real EstatePairCorr
  0.84SRPSX Short Real EstatePairCorr
  0.71BTCFX Bitcoin Strategy ProfundPairCorr

Sensitivity To Market

BASIC MATERIALS systematic risk exposure is reflected in a beta value of 1.38. Beta is derived from regression analysis comparing asset and benchmark returns. Measured volatility currently stands near 1.75%.Over the current lookback period, Basic Materials Ultrasector shows a low volatility profile, using downside deviation (1.81%) as a primary reference. Fund volatility reflects the combined movement of its underlying holdings and the fund’s asset mix.
Check current 90 days BASIC MATERIALS correlation with market (Dow Jones Industrial)
α0.26   β1.38
3 Months Beta |Analyze Basic Materials Demand Trend
Check current 90 days BASIC MATERIALS correlation with market (Dow Jones Industrial)

Downside Risk

Standard deviation for BASIC expresses the daily price volatility over a selected time horizon as a spread around the mean. High values indicate volatile instruments; low values indicate stable ones.
Standard Deviation
    
  1.75  
For BASIC MATERIALS investors, the distinction between upside and downside risk matters. Standard deviation measures total volatility including favorable moves, while downside deviation and semi-deviation isolate the loss risk in BASIC MATERIALS's daily returns. Basic Materials Ultrasector's financial profile includes a Downside Deviation of 1.81, a Downside Variance of 3.29, and a Maximum Drawdown of 7.42.

Mutual Fund Volatility Analysis

Volatility describes the degree to which BASIC MATERIALS mutual fund price fluctuates in either direction. Highly volatile mutual funds like BASIC MATERIALS can offer significant profit opportunities, but also come with heightened risk.
Transformation
This analysis covers sixty-one data points across the selected time horizon. Basic Materials 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.

Projected Return Density Against Market

Assuming a 90-day horizon BASIC MATERIALS has a beta of 1.3841 suggesting as the benchmark fluctuates upward, the fund is expected to outperform it on average. However, if the benchmark returns are projected to be negative, BASIC MATERIALS will likely underperform.
Systematic risk links BASIC MATERIALS to overall mutual fund market cycles, while unsystematic risk stems from company or sector-specific developments. Diversification addresses the latter, but macro sensitivity persists. Beta measures relative responsiveness. Basic Materials Ultrasector's financial profile includes a Downside Deviation of 1.81, a Mean Deviation of 1.28, and a Semi Deviation of 1.68.
Basic Materials Ultrasector has an alpha of 0.2604, implying that it can generate a 0.2604 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Density   
       Returns  
BASIC MATERIALS's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much BASIC MATERIALS's price typically deviates from the mean over a given period.

What Drives BASIC MATERIALS's Price Volatility?

Several factors can influence BASIC MATERIALS's market volatility:

Industry Dynamics

Sector-level events can directly affect BASIC MATERIALS's price stability. Regulatory changes, supply disruptions, or shifts in demand within BASIC MATERIALS's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like BASIC MATERIALS.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for BASIC MATERIALS's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward BASIC MATERIALS. During periods of economic expansion, BASIC MATERIALS's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

BASIC MATERIALS's Company-Specific Factors

Volatility can also stem from events unique to BASIC MATERIALS. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in BASIC MATERIALS's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on BASIC MATERIALS's share price.

Mutual Fund Risk Measures

Assuming a 90-day horizon the coefficient of variation of BASIC MATERIALS is 1715.25. The daily returns are distributed with a variance of 3.05 and standard deviation of 1.75. The mean deviation of Basic Materials Ultrasector is currently at 1.31. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α
Alpha over Dow Jones
0.26
β
Beta against Dow Jones1.38
σ
Overall volatility
1.75
Ir
Information ratio 0.13

Mutual Fund Return Volatility

BASIC MATERIALS historical daily return volatility represents how much of BASIC MATERIALS fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund reported 1.7473% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8181% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

GLBIXGMGEX
GMGEXKGGIX
GMGEXANAZX
GLBIXKGGIX
GLBIXAPDPX
GLBIXANAZX
  

High negative correlations

BXFIXAPDPX
BXFIXGLBIX
BXFIXGMGEX
BXFIXKGGIX
BXFIXANAZX
MGKAXAPDPX

Risk-Adjusted Indicators

There is a big difference between BASIC Mutual Fund performing well and BASIC MATERIALS Mutual Fund doing well as a business compared to the competition. Risk-adjusted metrics allow investors to compare BASIC MATERIALS's efficiency and downside exposure against peers in a more meaningful way. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for BASIC MATERIALS reflects NAV dispersion and exposure stability across disclosure periods. Range expansion increases sensitivity to market stress conditions.

Inputs for Basic Materials Ultrasector come from fund disclosures and market reference feeds and are mapped into a consistent schema for analysis. Some fields can appear with publication lag. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Michael Smolkin - Member of Macroaxis Board of Directors
Last reviewed on March 16th, 2026

BASIC MATERIALS Investment Opportunity

Basic Materials Ultrasector is about 2.13 times more volatile than Dow Jones Industrial based on recent return behavior. Used properly, this comparison frames whether the extra volatility is strategic or simply uncompensated risk.You can use Basic Materials Ultrasector to protect your portfolios against small market fluctuations. This directional read frames the latest price swing through a simple momentum and follow-through lens. It is most useful when combined with broader risk controls and position-sizing discipline. an unexpected downward movement. The market is reacting to new fundamentals. Check odds of BASIC MATERIALS to be traded at $110.87 in 90 days.
Very weak diversification
For the present investment horizon, the measured correlation between BMPIX and DJI stands at 0.44, or Very weak diversification. The cleaner interpretation is to review correlation beside volatility, expected return, and the role each holding plays in the portfolio.

BASIC MATERIALS Additional Risk Indicators

Risk analysis around Basic Materials Ultrasector becomes more useful when investors review secondary indicators that can confirm, refine, or challenge the basic volatility picture. Used correctly, these measures can support both standalone risk assessment and portfolio-level hedging decisions.

BASIC MATERIALS Suggested Diversification Pairs

A pair strategy built around Basic Materials Ultrasector is useful when investors want to reduce directional market exposure while still expressing a relative-value idea. This framework is most useful when investors want to hedge directional moves caused by sector headlines or broad market pressure.
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 BASIC MATERIALS 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. BASIC MATERIALS'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, BASIC MATERIALS'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 Basic Materials Ultrasector.