Watch this special educative session on Volatility - the speaker will talk all about Volatility , and try to present the best ways to manage volatility

1. Volatility is the… Food for wealth

2. Why we are learning
about Volatility ?
• Lower the Volatility – Lower is the Return
• Higher the Volatility – Higher is the Return
• No Volatility – No returns ( or equal to Risk free Returns)

3. Today’s
Session
Volatility - Risk or Opportunity

4. Volatility of Price comes from
…
Volatility of thoughts & assumptions

5. What is volatility, in Financial Market ?
A measurement
of price
Explosion – both
side
Indicator of
diverse point of
view

6. What is non-volatile ?
• Those which have Predictable result ?
• If all horses are expected to run at a fixed speed – there will
be no volatility in betting price
• If a company has a predictable growth path – there will be
no volatility

7. Examples :
• Volatile Business :
• Metals, Chemicals, Cements etc
• IT
• Banking & Financial Services
• Consumer Durables
• Less Volatile Business
• FMCG
• Pharma

8. How to measure Volatility ?
• One of the major applications of volatility is the Volatility
Index or VIX, which was created by the Chicago Board of
Options Exchange.
• Nifty VIX is a measure of the 30-day expected volatility of
the stock market computed based on real-time quote prices
of NIFTY Option Price

9. NIFTY VIX

12. Ratio 1 : Beta
• Beta is a measure of a stock's volatility in
relation to the overall market. By definition, the
market has a beta of 1.0, and individual stocks
are ranked according to how much they deviate
from the market.
• <1 Beta is Low Risk & Low Opportunity
• >1 beta is High Risk & High Opportunity

13. NIFTY high beta Indices

15. Check the Gainers

16. Should we track the Volatile Business or Volatile
Stock ?
• Volatility in business is the general issue
• Volatility in stock is a specific issue

17. Uncertainty is the Reason of Volatility for any
business…
IF THE ANSWER IS NEGATIVE,
THE BUSINESS WILL FALL
IF THE ANSWER IS POSITIVE,
THE BUSINESS WILL RISE

19. Ratio 2 : SD
• A has the SD of 1.52% but B has the SD of 7.24%

20. SD is the measure of pure Risk
• If Beta of a company is 1.25 & SD is 22% , it could be the
best buy during the reverse trend

21. See the Chart
for Stocks ,
Beta & SD

22. Gyan of the Day
Opportunity exist in buying High Volatile business during the trend reversal

23. Current reasons which are causing Volatility
• COVID numbers & its effect
• Unemployment & Liquidity Shortage in parallel economy
• Lowering of Business Expenses – Digital initiatives
• Manufacturer to Consumer – Direct reach
• Skill supply & demand situation
• Change in spending Habit & need
• Geo Politics
• Global Stress
• Domestic Politics & Policies

24. Key identified business to be caught on reverse
trend
• Banking & Financial Services
• Morotorium ka kya hoga ?
• Telecom
• Spectrum ka kya hoga ?
• Consumer Durables
• Festival buying ka kya hoga ?
• IT
• Digital growth ka kya hoga ?

25. Items which have
less questions
• Power, Energy , FMCG & Pharma
• Kitna Consume Hoga …
• Kis rate par consume hoga ..

26. Best products to get benefited form Volatility
Recurring or SIP (
Systematic
Investment Plan)
way to invest
1
Fixed Asset
Allocation : 50/50
or others
2
Dynamic Asset
Allocation :
Trendline , PE etc
3

27. See examples

28. Thank you
Disclaimer :
This session is the part of our education &
knowledge series conducted exclusively for the
customers of Infinity Finserv Pvt Ltd. This is not an
offer for investments or promotion of any
product. Viewers are advised to take this
learnings as a general learning towards good
investing

29. For any Transactions
in MF or Stocks

30. Infinity Finser Pvt Ltd
• 212 Saran Chambers 2
• Park Road
• Lucknow
• Ph # 9307218766
• Book your appointments Online : link pasted in your Chat