We consider Reliance Steel not too risky. Reliance Steel Aluminum maintains Sharpe Ratio (i.e. Efficiency) of 0.0238 which implies Reliance Steel Aluminum had 0.0238% of return per unit of risk over the last 1 month. Our philosophy towards forecasting volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Reliance Steel Aluminum which you can use to evaluate future volatility of the company. Please check Reliance Steel Aluminum Coefficient Of Variation of 4114.15, Semi Deviation of 1.1 and Risk Adjusted Performance of 0.0136 to confirm if risk estimate we provide are consistent with the epected return of 0.0277%.
|Investment Horizon||30 Days Login to change|
Reliance Steel Market Sensitivity
|As returns on market increase, returns on owning Reliance Steel are expected to decrease at a much smaller rate. During bear market, Reliance Steel is likely to outperform the market.One Month Beta |Analyze Reliance Steel Aluminum Demand TrendCheck current 30 days Reliance Steel correlation with market (DOW)|
β = -0.7588
Projected Return Density Against MarketAllowing for the 30-days total investment horizon, Reliance Steel Aluminum Co has beta of -0.7588 . This implies as returns on benchmark increase, returns on holding Reliance Steel are expected to decrease at a much smaller rate. During bear market, however, Reliance Steel Aluminum Co is likely to outperform the market. Moreover, Reliance Steel Aluminum Co has an alpha of 0.113 implying that it can potentially generate 0.113% excess return over DOW after adjusting for the inherited market risk (beta).
Allowing for the 30-days total investment horizon, the coefficient of variation of Reliance Steel is 4203.58. The daily returns are destributed with a variance of 1.36 and standard deviation of 1.16. The mean deviation of Reliance Steel Aluminum Co is currently at 0.82. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23