XYZ.AX - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 75/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±61.2% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 2.6x as much as the broader market.

Beta (Market Relation)

2.55x

Above average

Volatility (5Y p.a.)

61.2% p.a.

5-Year Horizon

Max Drawdown (5Y)

-68.8%

5-Year Horizon

Sharpe Ratio

-0.20

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

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

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	-12.2%
3 Years	54.0%	-56.2%	0.23	+16.2%
5 Years	61.2%	-68.8%	-0.2	—
10 Years	—	—	—	—

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

High market risk: Beta of 2.55 indicates above-average volatility compared to the broader market.

🔴 High valuation risk: Avg P/E of 131.6 (Elevated multiple compression risk)

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (61.2% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -68.8% in the extended horizon.