Asian Paints (India) Risk Analysis And Volatility Evaluation

ASIANPAINT -- India Stock  

INR 1,318  39.50  3.09%

Macroaxis considers Asian Paints unknown risk given 1 month investment horizon. Asian Paints Limited secures Sharpe Ratio (or Efficiency) of 0.3657 which signifies that Asian Paints Limited had 0.3657% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Asian Paints Limited technical indicators you can presently evaluate if the expected return of 0.6876% is justified by implied risk. Please makes use of Asian Paints Limited Downside Deviation of 1.28, Risk Adjusted Performance of 0.2633 and Mean Deviation of 1.55 to double-check if our risk estimates are consistent with your expectations.
Horizon     30 Days    Login   to change

Asian Paints Market Sensitivity

As returns on market increase, Asian Paints returns are expected to increase less than the market. However during bear market, the loss on holding Asian Paints will be expected to be smaller as well.
One Month Beta |Analyze Asian Paints Limited Demand Trend
Check current 30 days Asian Paints correlation with market (DOW)
β = 0.0946

Asian Paints Central Daily Price Deviation

Asian Paints Limited Technical Analysis

Transformation
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Asian Paints Projected Return Density Against Market

Assuming 30 trading days horizon, Asian Paints has beta of 0.0946 . This suggests as returns on market go up, Asian Paints average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Asian Paints Limited will be expected to be much smaller as well. Moreover, Asian Paints Limited has an alpha of 0.4072 implying that it can potentially generate 0.4072% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Assuming 30 trading days horizon, the coefficient of variation of Asian Paints is 273.45. The daily returns are destributed with a variance of 3.54 and standard deviation of 1.88. The mean deviation of Asian Paints Limited is currently at 1.52. For similar time horizon, the selected benchmark (DOW) has volatility of 1.22
α
Alpha over DOW
=0.41
β
Beta against DOW=0.09
σ
Overall volatility
=1.88
Ir
Information ratio =0.25

Asian Paints Return Volatility

Asian Paints Limited accepts 1.8802% volatility on return distribution over the 30 days horizon. DOW inherits 1.1955% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Asian Paints Volatility Factors

30 Days Market Risk

Unknown risk

Chance of Distress in 24 months

Unknown Distress

30 Days Economic Sensitivity

Insignificant

Investment Outlook

Asian Paints Investment Opportunity

Asian Paints Limited has a volatility of 1.88 and is 1.57 times more volatile than DOW. 17% of all equities and portfolios are less risky than Asian Paints. Compared to the overall equity markets, volatility of historical daily returns of Asian Paints Limited is lower than 17 (%) of all global equities and portfolios over the last 30 days. Use Asian Paints Limited to enhance returns of your portfolios. The stock experiences unexpected upward trend. Watch out for market signals. Check odds of Asian Paints to be traded at 1581.96 in 30 days. As returns on market increase, Asian Paints returns are expected to increase less than the market. However during bear market, the loss on holding Asian Paints will be expected to be smaller as well.

Asian Paints correlation with market

correlation synergy
Significant diversification
Overlapping area represents the amount of risk that can be diversified away by holding Asian Paints Limited and equity matching DJI index in the same portfolio.

Asian Paints Volatility Indicators

Asian Paints Limited Current Risk Indicators

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