Asian Paints (India) Risk Analysis And Volatility Evaluation

ASIANPAINT -- India Stock  

INR 1,305  5.75  0.44%

Macroaxis considers Asian Paints to be not too risky. Asian Paints Limited secures Sharpe Ratio (or Efficiency) of -0.2403 which signifies that Asian Paints Limited had -0.2403% of return per unit of risk over the last 1 month. Macroaxis philosophy towards foreseeing risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Asian Paints Limited exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Asian Paints Limited Risk Adjusted Performance of 0.11 and Mean Deviation of 0.8959 to double-check risk estimate we provide.
Horizon     30 Days    Login   to change

Asian Paints Market Sensitivity

As returns on market increase, returns on owning Asian Paints are expected to decrease at a much smaller rate. During bear market, Asian Paints is likely to outperform the market.
One Month Beta |Analyze Asian Paints Limited Demand Trend
Check current 30 days Asian Paints correlation with market (DOW)
β = -0.1576
Asian Paints Almost negative betaAsian Paints Limited Beta Legend

Asian Paints Limited Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. Asian Paints Limited Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Asian Paints Projected Return Density Against Market

Assuming 30 trading days horizon, Asian Paints Limited has beta of -0.1576 . This suggests as returns on benchmark increase, returns on holding Asian Paints are expected to decrease at a much smaller rate. During bear market, however, Asian Paints Limited is likely to outperform the market. Additionally, Asian Paints Limited has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Assuming 30 trading days horizon, the coefficient of variation of Asian Paints is -416.17. The daily returns are destributed with a variance of 2.48 and standard deviation of 1.57. The mean deviation of Asian Paints Limited is currently at 0.99. For similar time horizon, the selected benchmark (DOW) has volatility of 0.48
α
Alpha over DOW
=0.34
β
Beta against DOW=0.16
σ
Overall volatility
=1.57
Ir
Information ratio =0.36

Asian Paints Return Volatility

Asian Paints Limited accepts 1.5736% volatility on return distribution over the 30 days horizon. DOW inherits 0.4541% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Asian Paints Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Below average

30 Days Economic Sensitivity

Indifferent to market move

Investment Outlook

Asian Paints Investment Opportunity

Asian Paints Limited has a volatility of 1.57 and is 3.49 times more volatile than DOW. 14% 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 14 (%) of all global equities and portfolios over the last 30 days. Use Asian Paints Limited to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Asian Paints to be traded at 1369.99 in 30 days. As returns on market increase, returns on owning Asian Paints are expected to decrease at a much smaller rate. During bear market, Asian Paints is likely to outperform the market.

Asian Paints correlation with market

Good 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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