Stocks with low betas generate lower returns in bull markets, but could outperform in a bear market. These 100 stocks have low beta values.
Beta is the most widely-used financial metric to describe stock volatility. Negative beta stocks move inversely to the S&P 500 Index.
Given this situation, investors should draw a strategy to focus on low-risk assets and a combination of parameters that lead to better returns. The best way to do so is by banking on defensive stocks like consumer staples with low-beta (0 to 1) stocks with a high-dividend yield and...
A stock that moves more than the overall market will have a beta higher than 1, and a stock that moves less will have a beta lower than 1. This number indicates how much it will move compared to the market. For example, if a stock has a beta of 1.5, the stock will move higher ...
Lower Volatility Generally, stocks that pay a dividend are less volatile than stocks that do not. By definition, the beta (or volatility measure) of the S&P 500 index is 1.00 (SPY). The beta of the Dividend Aristocrats stocks, as measured using theNOBLETF, is 0.89. A beta below 1.00 me...
Stocks with Volatility:Volatility is a measure of price fluctuation. Day traders thrive on volatility as it presents opportunities to profit from rapid price movements. Look for stocks with a history of significant price swings and high beta values. Stocks that are too stable or stagnant may not...
dividend stocks tend to be less risky than non-dividend stocks, meaning they’re less likely to lose value in a down market. This is because dividend stocks are typically more established and have a lower beta, or volatility, than other types of stocks. This makes them a more stable invest...
If you would like less risk with an investment, you should buy stocks with betas greater than 1.0. Beta Coefficient: The beta coefficient is a statistical factor to evaluate the volatility of a stock return against the market return. With that being ...
Since she is retiring within the next few years, she’s seeking stocks with low volatility and steady returns. She considers two companies: ABC Corp. has a beta coefficient of 0.78, which makes it slightly less volatile than the S&P 500 index. XYZ Inc. has a beta coefficient of 1.45, ...
From then on, the manager will occasionally rebalance the portfolio as the market changes. The frequency depends on their agreement with the client—in some cases, it may be assessed once a year, once a quarter, or even every month. The more actively a portfolio is being managed, the highe...