RIO.TO - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 70/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±82.0% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 2.2x as much as the broader market.

Beta (Market Relation)

2.16x

Above average

Volatility (5Y p.a.)

82.0% p.a.

5-Year Horizon

Max Drawdown (5Y)

-86.3%

5-Year Horizon

Sharpe Ratio

0.47

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

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

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+58%
3 Years	63.7%	-41.0%	2.4	+155.3%
5 Years	82.0%	-86.3%	0.47	+42.9%
10 Years	335.6%	-94.2%	0.16	+54.8%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

High market risk: Beta of 2.16 indicates above-average volatility compared to the broader market.

Strong cyclicality: The business model is sensitive to economic downturns.

🔴 Low analyst coverage – higher uncertainty in growth estimates & projections

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (82.0% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -94.2% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

Audit Risk

Board Risk

Short Ratio

8.46