The most Boring Stocks in the ASX 200
Using ATR (Average True Range – Explanation here) as a percentage of share price you can rank the volatility (risk) of stocks relative to each other. I have done this below. Although it might be interesting to look at which stocks are the riskiest (which usually singles out the growth stocks, the best performers) it might be more interesting for the slower moving, risk-averse investors amongst you to identify the least risky stocks, the boring stocks, the “safer” (?) stocks and use those as your pool to stock pick from (usually the higher-yielding mature stocks) and you might be able to lead a less stressful investment path.
So here they are. I have used WEEKLY ATR numbers, not daily, to give a longer view of volatility rather than a momentary view.
THE LEAST VOLATILE STOCKS IN THE ASX 200
Here is a list of the least volatile 30 stocks in the AS 200 measured by Weekly ATR as a percentage of share price. As you will see, most of them fall into the following sectors:
- Most of them are big.
- Most of them are mature.
- All the banks are in there.
- Lots of infrastructure and utilities (reliable, regulated returns)
- Big Healthcare (defensive) also in there.
- Lots of REITs – reliable earnings from long-term leases.
The numbers – note the yields – this is a hunting ground for income – in the list are some large, low risk, high yielding stocks.
THE MOST VOLATILE STOCKS IN THE ASX 200
And here are the most volatile stocks in the ASX 200. Predictably dominated by smaller stocks, resources, growth stocks, technology stocks, and (momentarily in the pandemic) travel stocks.
The numbers – notice the size of the company (mostly small), the lack of yield, and in most cases no or very high (or negative) PE because they don't make (much) money (yet).