Stoxlitix tracks three benchmark-relative metrics — Relative Volatility (RV Score), Resilience Ratio, and Up/Down Volume Ratio — to determine whether institutional capital is actively defending a stock during market weakness. These metrics answer: Does this stock hold up when the market falls?
Price going up is easy to spot. What's harder — and far more valuable — is identifying which stocks institutional investors are actively protecting during market pullbacks. Institutions don't telegraph their accumulation through price alone. They reveal it through how a stock behaves relative to the benchmark when the market corrects.
The Three Core Metrics
Relative Volatility compares a stock's average daily price range to the benchmark's range. A higher RV Score means the stock is more volatile than Nifty — which affects position sizing and stop-loss placement.
During a market pullback, how far does this stock drop vs. how far the benchmark drops? A ratio below 1.0 means the stock is holding up better than Nifty — a hallmark of active institutional defense.
The ratio of total up-day volume to total down-day volume over a rolling window. A ratio above 1.0 confirms that more shares are being bought on advancing days than sold on declining ones.
Why These Metrics Matter for Position Sizing
The RV Score directly maps to how the system adjusts the volatility metrics for a given position. A stock with an RV Score of 3.0 is three times as volatile as the Nifty benchmark. This indicates that under high-volatility regimes, the mathematical model projects wider price swings, which corresponds to wider volatility bands and reduced hypothetical position sizes to keep hypothetical risk constant.
This is the core principle behind volatility-adjusted position sizing: the same rupee risk budget buys fewer shares in a high-volatility stock than in a low-volatility one. Without this calculation, standard models may over-project sizing for high-volatility profiles.
The highest-conviction setup combines a Resilience Ratio below 1.0 (stock holds better than Nifty in pullbacks) with an Up/Down Volume Ratio above 1.0 (more buying than selling pressure). This combination confirms that institutions are actively defending the position — absorbing retail selling rather than participating in it.
Reading All Three Arrays Together
Each metric tells part of the story. RV Score tells you how much risk buffer to build into your stop placement. Resilience Ratio tells you whether institutional hands are holding the stock up. The U/D Volume Ratio tells you whether the accumulation is confirmed by capital flow. When all three are favorable, the structural case for the trade is significantly stronger than any single metric could confirm alone.