Use Hot Topic Inc risk analysis concurrently with your other holdings, portfolios, and investing themes to protect against small markets fluctuations and to back test it against optimization strategy that fits your risk preferences. Analyze Themes
Projected Return Density against Market
Given investment horizon of 30 days, Hot Topic has beta of 0.09 . This indicates as returns on market go up, Hot Topic avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding Hot Topic Inc will be expected to be much smaller as well. Moreover, Hot Topic Inc has alpha of 0.09 implying that it can potentially generate 0.09% excess return over S&P 500 after adjusting for the inherited market risk (beta).
Predicted Return Density
Given investment horizon of 30 days, the coefficient of variation of Hot Topic is 821.44. The daily returns are destributed with a variance of 0.02 and standard deviation of 0.13. The mean deviation of Hot Topic Inc is currently at 0.09. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.55
Actual Return Volatility
Hot Topic Inc inherits 0.14% risk (volatility on return distribution) over the 30 days horizon. S&P 500 shows 0.55% volatility of returns over 30 trading days.