The rise in the equity market is never linear; volatility is the inherent nature of the market. The investing style of picking stocks that are less volatile than the broader market is a low-volatility strategy.
The volatility here is decided by calculating the standard deviation of daily price returns of the stock for the last one year; low volatility means finding those stocks whose standard deviation is less than 1 or less volatile than the benchmark, said Dilshad Billimoria, board member, Association of Registered Investment Advisors (ARIA).
