RE: RE: Report It wasn't really, it was ranked a 4 out of 10 (1 being the worst) -- right on the fringe of red. Also you need to understand the context of how the risk calc is done -- this is not much other than a gauge based on some short term performance/volatility.
Risk
Indicator
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the least risky stocks.
It is derived by looking at a series of long-term (5-year) and short-term (90-day) stock performance
measures including volatility (40% weight), magnitude of returns (30% weight), beta (20% weight), and
correlation (10% weight). A stock needs to have at least two of the four risk factors in order to receive
a final score. The company’s current risk indicator is presented for each factor alongside its four
closest industry peers based on similar market capitalization.
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Magnitude of Returns – The best / worst daily returns in the past 90 days and the best / worst
monthly returns in the past 60 months.
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Volatility – The standard deviation of the stock price over the last 90 days and last 60 months. The
average and largest intra-day stock swing is another measure of volatility.
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Beta – Measures how the stock performs versus the broader market based on the beta of the
company versus the relevant index.
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Correlation – Determines how correlated (or not) the stock is to the relevant index in the last 90
days and last 60 months.
Indicator Trend
The best, worst, and average risk indicator scores over the last five years allow users to put the