Royal risk analysis

Use Royal Bank of Canada risk analysis together with your other stock asset holdings to protect against small markets fluctuations as well as to check it against diversification policy that fits your risk preferences.  Optimize Portfolio

Projected Return Density against Market

Allowing for 30-days total investment horizon, Royal has beta of 0.34 . This implies as returns on market go up, Royal avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding Royal Bank of Canada will be expected to be much smaller as well. Moreover, Royal Bank of Canada has alpha of 0.34 implying that it can potentially generate 0.34% excess return over S&P 500 after adjusting for the inherited market risk (beta).Allowing for 30-days total investment horizon, the coefficient of variation of Royal is 929.83. The daily returns are destributed with a variance of 0.7 and standard deviation of 0.84. The mean deviation of Royal Bank of Canada is currently at 0.69. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.56

	(alpha)	=	0.34	Details
	(beta)	=	0.34	Details
	(volatility)	=	0.84	Details

Actual Return Volatility

Royal Bank of Canada accepts 0.84% volatility on return distribution over the 30 days horizon. S&P 500 shows 0.56% volatility of returns over 30 trading days.