Relative Risk vs. Return Landscape
If you would invest 101,470
in Reliance Industries Limited on June 28, 2014
and sell it today you would earn a total of 705
from holding Reliance Industries Limited or generate 0.69%
return on investment over 30
days. Reliance Industries Limited is generating 0.05% of daily returns assuming 1.68% volatility of returns over the 30 days investment horizon. Simply put, 17% of all equities have less volatile historical return distribution than Reliance Industries Limited and 99% of equity instruments are likely to generate higher returns than the company over the next 30 trading days.
Daily Expected Return (%)
Based on recorded statements Reliance Industries Limited has Operating Margin of 5.65%. This is 121.02% lower than that of the Basic Materials sector, and 171.63% higher than that of Oil and Gas Refining and Marketing
industry, The Operating Margin for all stocks is 149.74% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.