Risk & Volatility Calculator
Analyze the risk profile of your UK stock portfolio. Calculate Standard Deviation and Beta to understand market sensitivity and historical volatility.
Risk & Volatility Calculator
Measure your portfolio's Standard Deviation and Beta. Analyze stock risk relative to the FTSE 100 or global indices.
Risk Audit
Security Volatility Analysis
Volatility Analysis
Import your historical price points to visualize risk metrics and correlate performance against major market indices.
Understanding Stock Volatility
Risk and Volatility are the two most critical metrics for any serious investor, especially when navigating the London Stock Exchange. Volatility represents the degree of variation in trading prices over time. In finance, we primarily use two metrics to quantify this: Standard Deviation and Beta.
High volatility often indicates a high-risk-high-reward scenario, while low volatility suggests stability and capital preservation. Our calculator helps you differentiate between internal asset risk and broader market-related risk.
1. Standard Deviation (Total Risk)
Standard deviation measures how much a stock's returns deviate from its average (mean) return. A higher deviation means the price swings are wider, making the investment more unpredictable.
Risk Interpretation Table
What is Beta (β)?
Beta measures a stock's sensitivity to the broader market, usually the FTSE 100 for UK investors. It tells you if a stock moves more or less than the index.
- β=1
Market Correlation
Moves exactly in line with the market index. - β>1
Aggressive
More volatile than the market (e.g. tech or growth stocks). - β<1
Defensive
Less volatile than the market (e.g. utilities or staples).
Frequently Asked Questions
Essential knowledge for managing investment risk.
Frequently Asked Questions
Start Your Risk Audit Today
Understanding your exposure is the first step to becoming a successful long-term investor. Whether you are trading FTSE 100 blue chips or AIM growth stocks, knowing your Beta helps you stay calm during market storms.