Brent Crude Oil Commodity Profile
| BZUSD Commodity | 89.20 1.18 1.34% |
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Brent Crude is trading at 89.20 as of the 27th of April 2024, a 1.34 percent increase since the beginning of the trading day. The commodity's lowest day price was 87.29. The performance ratings for Brent Crude Oil are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 4th of November 2022 and ending today, the 27th of April 2024. Click here to learn more.
Brent Crude Oil Risk Profiles
In the context of commodities, the Brent market risk premium refers to the extra return investors expect from holding Brent Crude as part of a well-diversified portfolio. This premium is integral to the Capital Asset Pricing Model (CAPM), a framework widely employed by analysts and investors to determine the acceptable rate of return for investing in Brent. At the heart of the CAPM lies the interplay between risk and reward, often articulated through the metrics of alpha and beta. In the Brent market, alpha and beta serve as critical indicators for assessing Brent Crude's performance relative to broader market movements. Nonetheless, conventional measures of volatility also play a pivotal role, providing additional insights into the market's fluctuations and investment risk associated with Brent Crude Oil.
| Mean Deviation | 0.9577 | |||
| Semi Deviation | 1.07 | |||
| Standard Deviation | 1.28 | |||
| Variance | 1.63 |
Brent Crude Against Markets
Picking the right benchmark for Brent Crude commodity is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in Brent Crude commodity price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for Brent Crude is critical whether you are bullish or bearish towards Brent Crude Oil at a given time. Please also check how Brent Crude's historical prices are related to one of the top price index indicators.
View Brent Crude Related Equities
| Risk & Return | Correlation |
How to buy Brent Commodity?
Before investing in Brent Crude, you must ensure you fully understand your financial goals and how diversified (or not) your overall investments are now. Then, after you clearly understand your investment objectives, consider investing in Brent Crude. To buy Brent Crude commodity, you can follow these steps:- Choose a brokerage firm or find a reputable dealer: You need to select a brokerage firm to buy Brent Crude. Storage, insurance, and liquidity are significant factors. Physical commodities can be less liquid and more cumbersome to sell compared to financial assets.
- Open an account: Once you have chosen a brokerage firm, you will need to open an account. You will be required to provide personal information, such as your name, address, and Social Security number.
- Fund your account: You will need to deposit funds into your brokerage account to purchase Brent Crude commodity. You can do this by transferring funds from your bank account or other investment accounts.
- Place your order: Once you have located Brent Crude Oil commodity in your brokerage account, you can place your order to buy it. You will need to specify the number of shares you want to buy and the price you are willing to pay.
- Monitor your investment: After you have purchased Brent Crude Oil commodity, you should monitor your investment to track its performance and make informed decisions about buying, selling, or holding the commodity
It's important to note that investing in commodities, such as Brent Crude Oil, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember various factors, including economic indicators, political events, and investor sentiment, can influence commodity markets. These factors can cause fluctuations in commodity prices and lead to market volatility affecting your buy or sell decision. However, volatility can also present opportunities for investors to make gains by buying commodities when prices are low and selling when they are high. It's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of market volatility on their investments.
Already Invested in Brent Crude Oil?
The danger of trading Brent Crude Oil is mainly related to its market volatility and Commodity specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Brent Crude is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Brent Crude. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Brent Crude Oil is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any commodity could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.