Salix risk analysis

Use Salix Pharmaceuticals Ltd risk analysis together with your other stock asset holdings to enhance returns of your portfolios as well as to check it against diversification policy that fits your risk preferences.  Optimize Portfolio

Projected Return Density against Market

Given investment horizon of 30 days, Salix has beta of 0.82 . This entails as returns on market go up, Salix avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding Salix Pharmaceuticals Ltd will be expected to be much smaller as well. Moreover, Salix Pharmaceuticals Ltd has alpha of 0.82 implying that it can potentially generate 0.82% excess return over S&P 500 after adjusting for the inherited market risk (beta).Given investment horizon of 30 days, the coefficient of variation of Salix is 172.06. The daily returns are destributed with a variance of 1.99 and standard deviation of 1.41. The mean deviation of Salix Pharmaceuticals Ltd is currently at 0.96. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.55

	(alpha)	=	0.82	Details
	(beta)	=	0.82	Details
	(volatility)	=	1.41	Details

Actual Return Volatility

Salix Pharmaceuticals Ltd inherits 1.41% risk (volatility on return distribution) over the 30 days horizon. S&P 500 shows 0.55% volatility of returns over 30 trading days.