HCAN.L - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

6/7 High

6 / 7 SRI PRIIPs Risk Class

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors.

Volatility (5Y)

23.6% p.a.

5-Year Horizon

Max Drawdown (5Y)

-26.0%

Deepest Drawdown

Sharpe Ratio

0.31

Moderate (0.0 - 0.5)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

Focused (35% – 50%)

68 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

Focused weighting: Top holdings drive a major share of fund returns.

Top 10 Holdings

44.3%

Focused

Effective Holdings

~42

of 82 holdings

Top Sector

39.4%

Financial Services

Top Region / Country

97.6%

Canada

Elevated concentration in top individual holdings, leading sectors, or key regions.

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Volatility Expansion (3Y > 5Y)

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+15.1%
3 Years	27.3%	-26.0%	0.55	+17.6%
5 Years	23.6%	-26.0%	0.31	+9.9%
10 Years	23.5%	-40.6%	0.23	+7.8%

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 19.1

🟢 Deep market liquidity & capital coverage (Tier 1)

Solid fund volume

🟡 Moderate analyst coverage (15.6 analysts)

🔴 High single-country risk: 98% of portfolio in "Canada".

⚠️ Sector concentration: 39% in "Financial Services".

🔴 High Commodity Concentration: 34% of fund depends directly on volatile energy and raw material markets.

🔴 Dominant Cyclicality: 74% in cyclical industries – higher drawdown risk in recessions.

⚠️ Elevated Interest Rate Sensitivity: 50% in rate-sensitive or leverage-heavy industries (real estate, banks, utilities).

⚠️ Elevated Regulatory & Policy Risk: 66% in heavily regulated industries (defense, regulated utilities, healthcare policy).