DHANLAXMI Volatility

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532180 -- India Stock  

INR 11.26  0.24  2.18%

DHANLAXMI BANK is slightly risky given 3 months investment horizon. DHANLAXMI BANK retains Efficiency (Sharpe Ratio) of 0.6, which denotes the company had 0.6% of return per unit of risk over the last 3 months. Our approach to predicting the volatility of a stock is to use DHANLAXMI BANK market data together with company specific technical indicators. We were able to break down and interpolate twenty-one different technical indicators, which can help you to evaluate if expected returns of 3.81% are justified by taking the suggested risk. Use DHANLAXMI BANK market risk adjusted performance of 9.86, and coefficient of variation of 183.1 to evaluate company specific risk that cannot be diversified away.

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DHANLAXMI BANK Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of DHANLAXMI daily returns, and it is calculated using variance and standard deviation. We also use DHANLAXMI's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DHANLAXMI BANK volatility.

90 Days Market Risk

Slightly risky

Chance of Distress

90 Days Economic Sensitivity

Slowly supersedes the market

DHANLAXMI BANK Market Sensitivity And Downside Risk

DHANLAXMI BANK beta coefficient measures the volatility of DHANLAXMI stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents DHANLAXMI stock's returns against your selected market. In other words, DHANLAXMI BANK's beta of 0.3 provides an investor with an approximation of how much risk DHANLAXMI BANK stock can potentially add to one of your existing portfolios. Let's try to break down what DHANLAXMI's beta means in this case. As returns on the market increase, DHANLAXMI BANK returns are expected to increase less than the market. However, during the bear market, the loss on holding DHANLAXMI BANK will be expected to be smaller as well.
3 Months Beta |Analyze DHANLAXMI BANK Demand Trend
Check current 30 days DHANLAXMI BANK correlation with market (DOW)
β

Current DHANLAXMI BANK Beta Coefficient

 = 

DHANLAXMI BANK Central Daily Price Deviations

It is essential to understand the difference between upside risk (as represented by DHANLAXMI BANK's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of DHANLAXMI BANK stock's daily returns or price. Since the actual investment returns on holding a position in DHANLAXMI BANK stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in DHANLAXMI BANK.

DHANLAXMI BANK Volatility Analysis

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DHANLAXMI BANK Projected Return Density Against Market

Assuming the 30 trading days horizon, DHANLAXMI BANK has a beta of 0.3006 . This suggests as returns on the market go up, DHANLAXMI BANK average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding DHANLAXMI BANK LIMITED will be expected to be much smaller as well. In addition to that, Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to DHANLAXMI BANK or DHANLAXMI BANK LIMITED sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that DHANLAXMI BANK stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a DHANLAXMI stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. The company has an alpha of 2.8816, implying that it can generate a 2.88 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

DHANLAXMI BANK Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to DHANLAXMI BANK or DHANLAXMI BANK LIMITED sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that DHANLAXMI BANK stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a DHANLAXMI stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Assuming the 30 trading days horizon, the coefficient of variation of DHANLAXMI BANK is 165.41. The daily returns are destributed with a variance of 39.68 and standard deviation of 6.3. The mean deviation of DHANLAXMI BANK LIMITED is currently at 4.97. For similar time horizon, the selected benchmark (DOW) has volatility of 2.14
α
Alpha over DOW
=2.88
β
Beta against DOW=0.30
σ
Overall volatility
=6.30
Ir
Information ratio =0.50

DHANLAXMI BANK Return Volatility

DHANLAXMI BANK historical daily return volatility represents how much DHANLAXMI BANK stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company accepts 6.2992% volatility on return distribution over the 30 days horizon. By contrast, DOW inherits 1.8606% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

About DHANLAXMI BANK Volatility

Volatility is a rate at which the price of DHANLAXMI BANK or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of DHANLAXMI BANK may increase or decrease. In other words, similar to DHANLAXMI's beta indicator, it measures the risk of DHANLAXMI BANK and helps estimate the fluctuations that may happen in a short period of time. So if prices of DHANLAXMI BANK fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Dhanlaxmi Bank Limited provides various banking and financial services in India. Dhanlaxmi Bank Limited was founded in 1927 and is headquartered in Thrissur, India. DHANLAXMI BANK operates under Money Center Banks classification in India and is traded on Bombay Stock Exchange. It employs 2021 people.

DHANLAXMI BANK Investment Opportunity

DHANLAXMI BANK LIMITED has a volatility of 6.3 and is 3.39 times more volatile than DOW. 54  of all equities and portfolios are less risky than DHANLAXMI BANK. Compared to the overall equity markets, volatility of historical daily returns of DHANLAXMI BANK LIMITED is higher than 54 () of all global equities and portfolios over the last 30 days. Use DHANLAXMI BANK LIMITED to enhance returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of DHANLAXMI BANK to be traded at 13.51 in 30 days. . Let's try to break down what DHANLAXMI's beta means in this case. As returns on the market increase, DHANLAXMI BANK returns are expected to increase less than the market. However, during the bear market, the loss on holding DHANLAXMI BANK will be expected to be smaller as well.

DHANLAXMI BANK correlation with market

correlation synergy
Average diversification
Overlapping area represents the amount of risk that can be diversified away by holding DHANLAXMI BANK LIMITED and equity matching DJI index in the same portfolio.

DHANLAXMI BANK Additional Risk Indicators

The analysis of various secondary risk indicators of DHANLAXMI BANK is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in DHANLAXMI BANK investment, and either accepting that risk or mitigating it. Along with some common measures of DHANLAXMI BANK stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging your existing portfolio. Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing the like to determine which investment holds the most risk.
Risk Adjusted Performance1.17
Market Risk Adjusted Performance9.86
Mean Deviation4.05
Coefficient Of Variation183.1
Standard Deviation5.44
Variance29.58
Information Ratio0.4962

DHANLAXMI BANK Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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