What companies have the highest betas?

What sector has the highest beta?

While Information Technology had the highest historical beta and risk, other cyclical sectors such as Consumer Discretionary and Industrials showed similar properties, albeit to a lesser extent.

How do you find high beta stocks?

Beta could be calculated by first dividing the security's standard deviation of returns by the benchmark's standard deviation of returns. The resulting value is multiplied by the correlation of the security's returns and the benchmark's returns.

How do I select high beta stocks for intraday?

Is Apple a high beta stock?

In accordance with the recently published financial statements, Apple Inc has a Beta of 1.2. This is 13.21% higher than that of the Technology sector and 42.86% higher than that of the Consumer Electronics industry. The beta for all United States stocks is notably lower than that of the firm.

What is Beta? - MoneyWeek Investment Tutorials

Are high beta stocks good?

High beta stocks are those that are positively correlated with returns of the S&P 500, but at an amplified magnitude. Because of this amplification, these stocks tend to outperform in bull markets, but can greatly underperform in bear markets.

What sector has lowest beta?

The sectors that ranked lowest in beta are about what we'd expect. Consumer staples (things people buy in good times and bad), as well as utilities (the light and power we take for granted in the developed world), led the way with betas of 0.57 each.

Where can I find industry betas?

Go to the website Google Finance and search for your company. Scroll down the left menu to Description; click on More from Reuters; select Financials and find Beta among the Valuation Ratios for your company (along with industry and sector beta).

What stock has a beta of 1?

Beta of 1: A beta of 1 means a stock mirrors the volatility of whatever index is used to represent the overall market. If a stock has a beta of 1, it will move in the same direction as the index, by about the same amount. An index fund that mirrors the S&P 500 will have a beta close to 1.

Do high beta stocks outperform?

Low-beta stocks tend to rise or fall by less. Investment theory holds that, in order to induce investors to incur high-beta stocks' additional risk, they must over time produce a greater return. But in practice, according to this new research, high-beta stocks tend to outperform in just one week per quarter.

How much beta is good for intraday trading?

Key Takeaways. Beta is a concept that measures the expected move in a stock relative to movements in the overall market. A beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility.

Is a high or low beta better?

By definition, the market itself has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the macro market. High-beta stocks (>1.0) are supposed to be riskier but provide the potential for higher returns; low-beta stocks (<1.0) pose less risk but also lower returns.