OIL INDIA (India) Volatility

OIL -  India Stock  

INR 217.70  16.30  6.97%

OIL INDIA appears to be very steady, given 3 months investment horizon. OIL INDIA LTD maintains Sharpe Ratio (i.e., Efficiency) of 0.21, which implies the firm had 0.21% of return per unit of volatility over the last 3 months. Our approach towards forecasting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. By inspecting OIL INDIA LTD technical indicators you can now evaluate if the expected return of 0.55% is justified by implied risk. Please evaluate OIL INDIA's risk adjusted performance of 0.1203, and Semi Deviation of 1.71 to confirm if our risk estimates are consistent with your expectations.

OIL INDIA Volatility 

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

360 Days Market Risk

Very steady

Chance of Distress

Below Average

360 Days Economic Sensitivity

Almost neglects market trends

OIL INDIA Market Sensitivity And Downside Risk

OIL INDIA's beta coefficient measures the volatility of OIL INDIA 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 OIL INDIA stock's returns against your selected market. In other words, OIL INDIA's beta of -0.38 provides an investor with an approximation of how much risk OIL INDIA stock can potentially add to one of your existing portfolios.
Let's try to break down what OIL INDIA's beta means in this case. As returns on the market increase, returns on owning OIL INDIA are expected to decrease at a much lower rate. During the bear market, OIL INDIA is likely to outperform the market.
3 Months Beta |Analyze OIL INDIA LTD Demand Trend
Check current 90 days OIL INDIA correlation with market (DOW)

OIL INDIA Beta

    
  -0.38  
OIL INDIA 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

    
  2.65  
It is essential to understand the difference between upside risk (as represented by OIL INDIA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OIL INDIA stock's daily returns or price. Since the actual investment returns on holding a position in OIL INDIA 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 OIL INDIA.

OIL INDIA LTD Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. OIL INDIA LTD 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.

OIL INDIA Projected Return Density Against Market

Assuming the 90 days trading horizon OIL INDIA LTD has a beta of -0.3794 . This indicates as returns on benchmark increase, returns on holding OIL INDIA are expected to decrease at a much lower rate. During the bear market, however, OIL INDIA LTD is likely to outperform the market.
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 OIL INDIA or Energy 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 OIL INDIA 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 OIL INDIA 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 0.4195, implying that it can generate a 0.42 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

OIL INDIA Stock 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 OIL INDIA or Energy 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 OIL INDIA 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 OIL INDIA 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 OIL INDIA is 480.69. The daily returns are distributed with a variance of 7.0 and standard deviation of 2.65. The mean deviation of OIL INDIA LTD is currently at 1.83. For similar time horizon, the selected benchmark (DOW) has volatility of 0.71
α
Alpha over DOW
0.42
β
Beta against DOW-0.38
σ
Overall volatility
2.65
Ir
Information ratio 0.15

OIL INDIA Stock Return Volatility

OIL INDIA historical daily return volatility represents how much OIL INDIA stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company assumes 2.6466% volatility of returns over the 90 days investment horizon. By contrast, DOW inherits 0.7131% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About OIL INDIA Volatility

Volatility is a rate at which the price of OIL INDIA 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 OIL INDIA may increase or decrease. In other words, similar to OIL INDIA's beta indicator, it measures the risk of OIL INDIA and helps estimate the fluctuations that may happen in a short period of time. So if prices of OIL INDIA 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.
Oil India Limited explores for, develops, and produces crude oil and natural gas in India and internationally. Oil India Limited was founded in 1889 and is based in Noida, India. OIL INDIA operates under Oil Gas EP classification in India and is traded on Bombay Stock Exchange. It employs 8347 people.

OIL INDIA Investment Opportunity

OIL INDIA LTD has a volatility of 2.65 and is 3.73 times more volatile than DOW. 22  of all equities and portfolios are less risky than OIL INDIA. Compared to the overall equity markets, volatility of historical daily returns of OIL INDIA LTD is lower than 22 () of all global equities and portfolios over the last 90 days. Use OIL INDIA LTD to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of OIL INDIA to be traded at 206.81 in 90 days. . Let's try to break down what OIL INDIA's beta means in this case. As returns on the market increase, returns on owning OIL INDIA are expected to decrease at a much lower rate. During the bear market, OIL INDIA is likely to outperform the market.

Good diversification

The correlation between OIL INDIA LTD and DJI is Good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OIL INDIA LTD and DJI in the same portfolio assuming nothing else is changed.

OIL INDIA Additional Risk Indicators

The analysis of OIL INDIA'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 OIL INDIA's investment and either accepting that risk or mitigating it. Along with some common measures of OIL INDIA 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 Performance0.1203
Market Risk Adjusted Performance(1.07)
Mean Deviation1.79
Semi Deviation1.71
Downside Deviation2.72
Coefficient Of Variation625.77
Standard Deviation2.62
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.

OIL INDIA 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 OIL INDIA 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. OIL INDIA'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, OIL INDIA'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 OIL INDIA LTD.
Please check Your Equity Center. Note that the OIL INDIA LTD information on this page should be used as a complementary analysis to other OIL INDIA'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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Tools for OIL INDIA Stock

When running OIL INDIA LTD price analysis, check to measure OIL INDIA'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 OIL INDIA is operating at the current time. Most of OIL INDIA's value examination focuses on studying past and present price action to predict the probability of OIL INDIA's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move OIL INDIA's price. Additionally, you may evaluate how the addition of OIL INDIA to your portfolios can decrease your overall portfolio volatility.
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