UGAZF: Credit Suisse Velocity Shares 3x Long Natural Gas is an investment that has gained much interest from investors worldwide. It’s an investment that offers many different benefits, including liquidity, the possibility of growth, and the potential for dividends. It also gives investors much flexibility, as they can invest in various natural gas stocks.
Price of Spot Natural Gas
Listed on NYSE Arca, the Velocity Shares TM 3x Long Natural Gas ETN is tied to the S&P GSCI(r) Natural Gas Index ER, due February 9, 2032. The underlying index does not measure the price of spot natural gas but rather the performance of futures contracts. Fortunately, the 3x long ETNs will be rewarded with a 1 for 10 reverse split, which means that the holders of the pre-reverse split ETNs will get one reverse split-adjusted ETN for every ten pre-reverse split ETNs.
Over-the-Counter Trading
On June 22, 2020, Credit Suisse AG will suspend further issuances of the NYSE ETNs. The company will also be moving nine inverse ETNs to over-the-counter trading. Earlier this month, the VelocitySharesTM Daily 3x Long Natural Gas ETN entered the ol’ over-the-counter arena, albeit with a net asset value of a mere $122 million.
Benchmark Index
Whether you want to measure the correlation between a stock or an index, R-squared is a handy tool. The value of r-squared can depend on your investment goals. You may want to have a low r-squared for more diversification or a high r-squared to track a benchmark index closely.
Performance of Velocity Shares TM
If you’re interested in the performance of Velocity Shares TM 3x Long Natural Gas ETN, you’ll want to compare it with the performance of the top dry natural gas producers. This ETN has underperformed the leading dry natural gas producer equities since March 9th, 2020. As a result, Credit Suisse has decided to pull the plug on this ETN.
Swiss Bank
Credit Suisse is a Swiss bank. They offer financial services for private and corporate clients. They also have a segment that provides financial solutions for institutional clients. This segment offers financial advice and solutions for the Swiss and EMEA (Europe, Middle East, and Africa) markets. They also have a wealth management product division that provides financial solutions for Asia Pacific clients.
Despite the recent delisting of the VelocityShares Daily 3x Long Natural Gas ETN (UGAZF), the triple-leveraged natural gas ETF remains on the books, albeit with some caveats. A delisting will affect the DGAZF, and nine other ETNs will also be swept up in the dust. Direxion will also conduct a reverse split of its twelve ETFs in a related move. A gimmick that will only affect a small percentage of outstanding shares but is the most significant of its kind in the industry.
A Wave of Energy Market
As a product that has traded in the over-the-counter market since July 2016, it’s safe to say the UGAZF has been riding the wave of energy market volatility for some time. During that time, the aforementioned ETN soared from its $3 billion launch price to its current $122 million valuation. In the context of the energy market, this is a good thing. However, the DGAZF is offering a lot of bang for your buck.
Whether or not you are buying or selling, it is essential to understand the standard deviation of Credit Suisse VelocityShares 3x Long Natural Gas ETN. This indicator is one of the most widely used risk indicators in finance. It measures the dispersion of prices, affecting the value of many financial instruments.
Standard Deviation of Credit Suisse VelocityShares
If you’re wondering what the standard deviation of Credit Suisse VelocityShares is, it’s currently 5.16. This is a significant number, which means that many of the data points are wildly far from the mean. You can use this information to help gauge your own portfolio’s volatility. You can also use this information to help you create new portfolios.
Generally, a significant standard deviation indicates that a data point is far from the mean. However, it’s also essential to remember that this number may be higher for commodities in higher price ranges.
Several exchange-traded notes (ETNs) issued by Credit Suisse Group AG (CS) are being liquidated. The company is also accelerating the redemption of eight other notes and suspending further issuances of ETNs on the Nasdaq exchange.
Final Words:
Credit Suisse is liquidating the VelocityShares Daily 3x Inverse Natural Gas ETN (UGAZF) and the VelocityShares Daily 3x Long Natural Gas ETN (UGAZ). The UGAZ ETN was previously listed on the NYSE Arca exchange but has been trading on the over-the-counter market since July last year.
UGAZ is designed as a tactical trading tool. It promises to give investors 3x exposure to the S&P GSCI Natural Gas Excess Return Index, which is the reference index for the product. It does not reflect income from collateral. However, the leveraged product is designed to take advantage of higher natural gas prices. It has been performing poorly in recent months.
