Stocks with low volatility and momentum for NOV 2022

Published: November 3, 2022 at 6:00 am

Last Updated on December 1, 2022

We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks.  There are now three different screener files available.

(1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file

(2) Stocks with low volatility and momentum from the BSE 500 universe are available as a separate file

(3) Historical data from March 2019 to Feb 2022 will be based on the Nifty 100. From March 2022 onwards, it will be based on BSE 100. This is available as a separate file.


🔥Enjoy massive year-end discounts on our courses and robo-advisory tool! 🔥
Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)
 
New Tool! => Track your mutual funds and stocks investments with this Google Sheet!

The common method of filtration: We filter for (1) positive 1-year return, (2) positive six-month return, (3) price > 200-day moving average, (4) 50% of daily positive returns, and (5) lowest volatility.

What is low-volatility investing? Low volatility investing refers to identifying stocks with low price fluctuations and investing in them. Again this is based on past evidence: Low volatility stock investing: Does it work? Higher returns at lower risk?

What is momentum investing? Investing in stocks that have increased considerably over the past 6-12 months, hoping the trend will continue (for a short period). Relevant data and links for the Indian and US markets are discussed here: Momentum Stock Investing in India: Does it work?

There is a close connection between momentum investing and low volatility. Most momentum stock-picking strategies also include a way to filter out stocks based on volatility. They prefer stocks that have moved up in the past (= momentum) with low volatility. Another closely related idea is to hunt for stocks that have stayed close to their all-time price highs.

Warning: Whether you choose stocks with momentum or low volatility, it is important to recognize when to sell them. This kind of trend following requires serious levels of discipline and commitment. You should be able to buy a stock without question and sell it without question in a short period if it no longer has enough momentum and/or low volatility. If you get distracted by the stocks’ valuation, ROE, etc. and hesitate or buy more than necessary, it will not work. Please do not blindly use this list to buy and clutter your portfolio. This list will evolve in method with time. So be prepared for this. Do your research about momentum and low-volatility investing!! Decide which to give more priority to – low volatility or momentum. The standard past performance is not representative of future performance disclaimer applies here. No method will work all the time!

Momentum Investing in India

You can watch this video version of the above-linked post to get an introduction to momentum investing.

Low Volatility Investing in India

 

Suppose p1 is the previous day’s closing price, and p2 is today’s closing price. Daily return is defined as (p2-p1)/p1. This is the percentage change in price. When we compute these daily returns’ standard deviation, we assume they fall on a bell curve. This is wrong. The next better step would be to assume that the log return defined as log (p2) – log(p1) falls on a bell curve.

This is also not an accurate approximation as market returns are fractal in nature. However, this is a closer approximation. So, the standard deviation of log returns is used for creating low volatility indices. However, there is not much difference for the present case; you could use just the ordinary standard deviation.

Why should returns fall on a bell curve? If they do not, then the “average” and “standard deviation” have no meaning!!

How to use this screener?

You can use it in multiple ways. Here are some suggestions.

 

Please note: All five filters will be enabled when you open the file. You can reset them and use any filter that you like.

To screen for low-volatility stocks:

  1. Sort by an increasing standard deviation
  2. Choose stocks with the lowest volatility.
  3. Optionally you can consider stocks with price momentum in the last six months, 12 months or longer.

To screen for momentum stocks:

  1. Remove stocks with negative six months AND 1Y returns.
  2. Remove stocks with 50% or lower positive daily returns.
  3. Remove stocks with a current price lower than the last 200-day average.
  4. Sort remaining stocks by increasing the standard deviation.
  5. Choose stocks with low volatility and high momentum (high 6-month or 1Y returns).

Note: Frequent trading may be necessary for both approaches. If the stock does not meet the above criteria in the next month’s screener, you will have to sell in full and replace it with another regardless of tax.

Get the stock lists!

Terms and conditions

  1. If you want Nov 2022 data for BSE 100 alone, the cost is Rs. 111.
  2. If you want Nov 2022 data for BSE 500 alone, the cost is Rs. 300.
  3. If you want monthly historical data for the Top 100 stocks: March 2019 to Nov 2022, the price is  Rs. 500. This will help you spot consistently low volatile stocks.
  4. This purchase gives you access to exclusive discounts on the two courses we run:  How to get people to pay for your skills (aka earn from skills) and the lectures on goal-based portfolio management.
  5. While we will do our best to publish updated screener sheets each month, we cannot guarantee the same.
  6. The file does not contain any buy or sell recommendations and only has data derived from price information.
  7. Enough care and effort have been put in to weed out errors; however, I cannot guarantee that the sheet is free of error.
  8. The buyer will have to research using the information in the spreadsheet and develop their strategy. No recommendations or assistance are included in the sheet and will not be provided separately.
  9. We will not provide any further help or assistance in using the sheet.
  10. We are not responsible for your capital losses or gains from using this sheet.

Follow this link to get the latest stock screener!

Do share this article with your friends using the buttons below.

🔥Enjoy massive year-end discounts on our courses and robo-advisory tool! 🔥
Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
  • Follow us on Google News.
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Join our YouTube Community and explore more than 1000 videos!
  • Have a question? Subscribe to our newsletter with this form.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)
 
Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.
  Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)