HSBC Infrastructure (India) Volatility

0P0000XW9Q -  India Fund  

INR 23.19  1.50  6.08%

We consider HSBC Infrastructure very steady. HSBC Infrastructure retains Efficiency (Sharpe Ratio) of 0.0787, which attests that the entity had 0.0787% of return per unit of return volatility over the last 3 months. Our approach to determining the volatility of a fund is to use all available market data together with fund-specific technical indicators that cannot be diversified away. We have found twenty-six technical indicators for HSBC Infrastructure, which you can use to evaluate the future volatility of the entity. Please check out HSBC Infrastructure Equity Market Risk Adjusted Performance of 0.5327, downside deviation of 1.16, and Semi Deviation of 1.07 to validate if the risk estimate we provide is consistent with the expected return of 0.12%.

0P0000XW9Q Volatility 

 
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HSBC Infrastructure Fund 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 0P0000XW9Q daily returns, and it is calculated using variance and standard deviation. We also use 0P0000XW9Q's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of HSBC Infrastructure volatility.

30 Days Market Risk

Very steady

Chance of Distress

30 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as HSBC Infrastructure can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of HSBC Infrastructure at lower prices. For example, an investor can purchase 0P0000XW9Q stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of HSBC Infrastructure's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

HSBC Infrastructure Market Sensitivity And Downside Risk

HSBC Infrastructure's beta coefficient measures the volatility of 0P0000XW9Q fund 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 0P0000XW9Q fund's returns against your selected market. In other words, HSBC Infrastructure's beta of 0.19 provides an investor with an approximation of how much risk HSBC Infrastructure fund can potentially add to one of your existing portfolios.
Let's try to break down what 0P0000XW9Q's beta means in this case. As returns on the market increase, HSBC Infrastructure returns are expected to increase less than the market. However, during the bear market, the loss on holding HSBC Infrastructure will be expected to be smaller as well.
3 Months Beta |Analyze HSBC Infrastructure Demand Trend
Check current 90 days HSBC Infrastructure correlation with market (DOW)

0P0000XW9Q Beta

    
  0.19  
0P0000XW9Q standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.56  
It is essential to understand the difference between upside risk (as represented by HSBC Infrastructure's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of HSBC Infrastructure stock's daily returns or price. Since the actual investment returns on holding a position in HSBC Infrastructure 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 HSBC Infrastructure.

HSBC Infrastructure Fund Volatility Analysis

Volatility refers to the frequency at which HSBC Infrastructure stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with HSBC Infrastructure's price changes. Investors will then calculate the volatility of HSBC Infrastructure's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of HSBC Infrastructure's volatility:

Historical Volatility

This type of stock volatility measures HSBC Infrastructure's fluctuations based on previous trends. It's commonly used to predict HSBC Infrastructure's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for HSBC Infrastructure's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. HSBC Infrastructure 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.

HSBC Infrastructure Projected Return Density Against Market

Assuming the 90 days trading horizon HSBC Infrastructure has a beta of 0.1912 . This suggests as returns on the market go up, HSBC Infrastructure average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding HSBC Infrastructure Equity will be expected to be much smaller as well.
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 HSBC Infrastructure or HSBC Asset Management(India)Private Ltd 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 HSBC Infrastructure 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 0P0000XW9Q 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 0.1096, implying that it can generate a 0.11 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
HSBC Infrastructure's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how HSBC Infrastructure stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

HSBC Infrastructure Fund 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 HSBC Infrastructure or HSBC Asset Management(India)Private Ltd 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 HSBC Infrastructure 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 0P0000XW9Q 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 90 days trading horizon the coefficient of variation of HSBC Infrastructure is 1270.01. The daily returns are distributed with a variance of 2.43 and standard deviation of 1.56. The mean deviation of HSBC Infrastructure Equity is currently at 1.03. For similar time horizon, the selected benchmark (DOW) has volatility of 0.85
α
Alpha over DOW
0.11
β
Beta against DOW0.19
σ
Overall volatility
1.56
Ir
Information ratio 0.13

HSBC Infrastructure Fund Return Volatility

HSBC Infrastructure historical daily return volatility represents how much HSBC Infrastructure stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The fund accepts 1.5585% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 0.8701% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About HSBC Infrastructure Volatility

Volatility is a rate at which the price of HSBC Infrastructure 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 HSBC Infrastructure may increase or decrease. In other words, similar to 0P0000XW9Q's beta indicator, it measures the risk of HSBC Infrastructure and helps estimate the fluctuations that may happen in a short period of time. So if prices of HSBC Infrastructure 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.
To generate long term capital appreciation from an actively managed portfolio of equity and equity related securities by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from growth and development of Infrastructure in India. HSBC Infrastructure is traded on Bombay Stock Exchange in India.

HSBC Infrastructure Investment Opportunity

HSBC Infrastructure Equity has a volatility of 1.56 and is 1.79 times more volatile than DOW. 13  of all equities and portfolios are less risky than HSBC Infrastructure. Compared to the overall equity markets, volatility of historical daily returns of HSBC Infrastructure Equity is lower than 13 () of all global equities and portfolios over the last 90 days. Use HSBC Infrastructure Equity to protect your portfolios against small market fluctuations. The fund experiences a very speculative upward sentiment. Check odds of HSBC Infrastructure to be traded at 22.03 in 90 days. . Let's try to break down what 0P0000XW9Q's beta means in this case. As returns on the market increase, HSBC Infrastructure returns are expected to increase less than the market. However, during the bear market, the loss on holding HSBC Infrastructure will be expected to be smaller as well.

Average diversification

The correlation between HSBC Infrastructure Equity Fun and DJI is Average diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Infrastructure Equity Fun and DJI in the same portfolio assuming nothing else is changed.

HSBC Infrastructure Additional Risk Indicators

The analysis of HSBC Infrastructure's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in HSBC Infrastructure's investment and either accepting that risk or mitigating it. Along with some common measures of HSBC Infrastructure 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 the risk of your existing portfolios.
Risk Adjusted Performance0.0848
Market Risk Adjusted Performance0.5327
Mean Deviation0.8736
Semi Deviation1.07
Downside Deviation1.16
Coefficient Of Variation1037.72
Standard Deviation1.14
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 similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

HSBC Infrastructure 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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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against HSBC Infrastructure as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. HSBC Infrastructure's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, HSBC Infrastructure's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to HSBC Infrastructure Equity.
Please continue to Trending Equities. Note that the HSBC Infrastructure information on this page should be used as a complementary analysis to other HSBC Infrastructure's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Tools for 0P0000XW9Q Fund

When running HSBC Infrastructure price analysis, check to measure HSBC Infrastructure's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HSBC Infrastructure is operating at the current time. Most of HSBC Infrastructure's value examination focuses on studying past and present price action to predict the probability of HSBC Infrastructure's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move HSBC Infrastructure's price. Additionally, you may evaluate how the addition of HSBC Infrastructure to your portfolios can decrease your overall portfolio volatility.
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