Risk and Returns

Months NIFTY RIL

How to quantify the Returns Jan-21 12000 1700
1. Historical Returns are based on Historical prices Feb-21 12500 1800
2. Expected Returns are based on the expectations Mar-21 12300 1710
Apr-21 12900 1900
To Calculate Returns, We can have two approaches May-21 13600 2100
1. Simple Returns (P1-P0)/P0 ==> (P1/P0)-1 Jun-21 12800 2010
2. Log Returns Jul-21 13900 2200

LN(P1/P0)
LN(P1)-LN(P0)

X Y
How to quantify the Risk Months NIFTY (%) RIL (%) (X-X-)
Volatility Feb-21 4.17 5.88 1.57
Mar-21 -1.60 -5.00 -4.20
Apr-21 4.88 11.11 2.28
May-21 5.43 10.53 2.83
Jun-21 -5.88 -4.29 -8.48
Jul-21 8.59 9.45 6.00
Average 2.60 4.61 0.00
SD 5.31 7.40
CV 2.05 1.60
Covar 35.67
Correl 0.91
 Simple Returns Log Returns
NIFTY (%) RIL (%) NIFTY (%) RIL (%)
--- --- --- ---
4.17 5.88 4.08 5.72
-1.60 -5.00 -1.61 -5.13
4.88 11.11 4.76 10.54
5.43 10.53 5.28 10.01
-5.88 -4.29 -6.06 -4.38
8.59 9.45 8.24 9.03

(Y-Y-) (X-X-)^2 (Y-Y-)^2 (X-X-)(Y-Y-)

1.27 2.46 1.61 1.99
-9.61 17.62 92.44 40.35
6.50 5.20 42.21 14.82
5.91 8.00 34.95 16.73
-8.90 71.90 79.21 75.47
4.84 35.96 23.41 29.01
0.00 141.15 273.82 178.37
N 6 6 6
Variance 28.22951 54.76479 35.67
SD 5.31 7.40
Correl 0.91