When a stock has a "beta" number what does that mean to me?
What is a beta?
- Thread starter Rodbuilder
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Beta measure a stock’s volatility to the market. So if the market goes up by 1 percent a stock with a beta of 1 in theory should be up 1%.
To expand on that it's important to emphasize the "to the market" part of the accurate description @10_bagger provided. Every stock has two types of volatility, it's idiosyncratic volatility due to factors specific to that specific company, and market based volatility based on the company's exposure to the entire market. It's entirely possible to have a very high volatility stock with a very low beta. That would indicate that the stock isn't impacted much by what happens in the broader market, but it does move around alot because of its own internal issues. The opposite can also be true, a stock could have a high beta, meaning it's moves are a multiple of the markets moves, but very little idiosyncratic volatility, meaning it pretty much only moves in response to the broader market, not changes in perception of the company itself. As an interesting aside, it's actually possible to have a negative beta, usually gold mining stocks.
You can find a lot of beta’s in the P&R section. Tony Stark, SpikeTrader, RRY, Futurecurrents, and the queen of them all, Nine Ender.
This is how portfolio would look like, if it has BETA of 0.40
Illusion of well diversified portfolio comes, when people hold multiple stocks (or any other financial assets), yet the beta of those stocks is close to 1,
which means, if the market crashes, - your portfolio goes down with it as well.
You can check this list. BETA is set from -1.0 to 0.50 ; you can adjust that to your own taste. The volume is high as well.
https://www.investing.com/stock-screener/?sp=country::5|sector::a|industry::a|equityType::a|exchange::a|eq_beta::-1,0.5<turnover_volume;1
Illusion of well diversified portfolio comes, when people hold multiple stocks (or any other financial assets), yet the beta of those stocks is close to 1,
which means, if the market crashes, - your portfolio goes down with it as well.
You can check this list. BETA is set from -1.0 to 0.50 ; you can adjust that to your own taste. The volume is high as well.
https://www.investing.com/stock-screener/?sp=country::5|sector::a|industry::a|equityType::a|exchange::a|eq_beta::-1,0.5<turnover_volume;1
How about you head on back there tough guy, you can be king of the pack of wild dogs if that's what you get off on.
Given that you're trolling a conversation I'm participating in, telling you to go elsewhere with your infantile fetishes is my fucking business!
Landscaper?
As a neutral party of the thread, @Sig you are in the wrong here.
@Clubber Lang Simply made a comment. The comment may have offended you, but did not address you specifically. You, Sig, then proceeded to take it further. Just my own observation from the back wall of the high-school wall where we smoke cigs. Or something, hehe.
@Clubber Lang Simply made a comment. The comment may have offended you, but did not address you specifically. You, Sig, then proceeded to take it further. Just my own observation from the back wall of the high-school wall where we smoke cigs. Or something, hehe.
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