Stock Risk Statistics Calculator

How These Numbers Are Calculated

Annualized volatility is the standard deviation of daily returns, scaled up to a yearly figure (multiplied by the square root of 252 trading days):

Volatility = StdDev(daily returns) × √252

Maximum drawdown is the biggest percentage drop from any peak price to the lowest point that followed it, before a new peak was reached, within the selected period.

Sharpe ratio compares the return earned to the risk taken:

Sharpe = (Annualized Return − Risk-Free Rate) ÷ Annualized Volatility

Worked example: Suppose a stock had an annualized return of 25% and annualized volatility of 30%, with a risk-free rate of 10%. Its Sharpe ratio would be (25% − 10%) ÷ 30% = 0.50 — meaning it earned 0.5 units of return for every unit of risk taken over that period.

Frequently Asked Questions

What is annualized volatility?

It measures how much a stock's price swings up and down over a year, based on the standard deviation of its daily returns. A higher number means bigger, more frequent price swings (more risk); a lower number means steadier, calmer price movement.

What is maximum drawdown?

The largest peak-to-trough decline the stock experienced during the selected period. For example, a max drawdown of -40% means that at some point, the stock fell 40% from its highest price during that window before recovering (or not).

What is the Sharpe ratio, and why does it use a placeholder risk-free rate?

The Sharpe ratio measures return earned per unit of risk taken - higher is generally better. It requires a "risk-free rate" (the return of a virtually risk-free investment, like a government T-bill) for comparison. We're currently using a placeholder rate until we source live Pakistani T-bill yield data; treat the Sharpe ratio shown here as illustrative, not precise, until then.

Why does this only go back a few years for some stocks?

Our historical price archive has full daily coverage starting around October 2015 for most actively-traded stocks. Newer listings, or stocks that were suspended/delisted, may have shorter or gapped histories - we show whatever real data exists and label it clearly.

Is this dividend-adjusted?

No. These statistics are calculated from raw closing prices only, not adjusted for dividends or stock splits. This can understate total returns for dividend-paying stocks.