We consider Reliance Steel not too risky. Reliance Steel Aluminum maintains Sharpe Ratio (i.e. Efficiency) of 0.0785 which implies Reliance Steel Aluminum had 0.0785% 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 620.29, Semi Deviation of 0.8957 and Risk Adjusted Performance of 0.0496 to confirm if risk estimate we provide are consistent with the epected return of 0.0947%.
|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 by larger amounts. On the other hand, during market turmoil, Reliance Steel is expected to significantly outperform it.One Month Beta |Analyze Reliance Steel Aluminum Demand TrendCheck current 30 days Reliance Steel correlation with market (DOW)|
β = -1.4083
Projected Return Density Against MarketAllowing for the 30-days total investment horizon, Reliance Steel Aluminum Co has beta of -1.4083 . This implies as returns on its benchmark rise, returns on holding Reliance Steel Aluminum Co are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Reliance Steel is expected to outperform its benchmark. Moreover, Reliance Steel Aluminum Co has an alpha of 0.3729 implying that it can potentially generate 0.3729% 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 1274.08. The daily returns are destributed with a variance of 1.46 and standard deviation of 1.21. The mean deviation of Reliance Steel Aluminum Co is currently at 0.89. For similar time horizon, the selected benchmark (DOW) has volatility of 0.26