HDRO.L - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

7/7 Very High

7 / 7 SRI PRIIPs Risk Class

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors.

Volatility (5Y)

38.8% p.a.

5-Year Horizon

Max Drawdown (5Y)

-81.0%

Deepest Drawdown

Sharpe Ratio

-0.39

Negative (< 0.0)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

High Concentration (> 50%)

44 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

High concentration risk: A few heavyweights drive the majority of fund value.

Top 10 Holdings

81.3%

Focused

Effective Holdings

~14

of 20 holdings

Top Sector

55.9%

Industrials

Top Region / Country

28.6%

United States

Elevated concentration in top individual holdings, leading sectors, or key regions.

Multi-Horizon Risk & Performance Matrix

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

Stable Long-Term Volatility High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+1.9%
3 Years	35.9%	-49.6%	0	+2.6%
5 Years	38.8%	-81.0%	-0.39	-12.8%
10 Years	—	—	—	—

Notes & Warnings

⚠️ Elevated valuation: Avg P/E of 36.3

Solid fund volume

🟡 Moderate analyst coverage (11.6 analysts)

🔴 Extreme top 10 holdings concentration: 81% of fund in top 10 positions.

🔴 Severe sector concentration risk: 56% in "Industrials".

⚠️ Sector concentration: 43% in "Basic Materials".

⚠️ Industry concentration: 45% in "Electrical Equipment & Parts".

⚠️ Industry concentration: 38% in "Specialty Chemicals".

⚠️ 24% of ETF holdings are unprofitable companies (fundamental solvency & cash-burn risk).

🔴 Growth estimates are hyper-concentrated: Top 3 growth drivers account for 68% of total forward growth.

🔴 High Commodity Concentration: 43% of fund depends directly on volatile energy and raw material markets.

🔴 Dominant Cyclicality: 100% in cyclical industries – higher drawdown risk in recessions.

ℹ️ Tech-Capex Exposure: 45% in semiconductors & hardware – dependent on hyperscaler capex cycles.

🔴 Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (38.8% p.a.).

⚠️ Historical Stress Test: Maximum peak-to-trough drawdown of -81.0% in the extended horizon.