What does a beta of 0.5 mean?

If a stock had a beta of 0.5, we would expect it to be half as volatile as the market: A market return of 10% would mean a 5% gain for the company. Here is a basic guide to beta levels: Negative beta: A beta less than 0, which would indicate an inverse relation to the market, is possible but highly unlikely.

What does a beta of 0.4 mean?

For a fund with a beta of 0.4, if the market rises 1%, the fund will rise on average, 0.4%. The relationship is the same in a falling market. (Please note that funds can have a negative beta, meaning that on average they rise when the market falls and vice versa)."

What does beta of 0.5 Tell us about a portfolio?

If an investor's portfolio has a beta of +0.5, for example, and the market is down 10%, one could reasonably expect their portfolio to decline by 5%.

What does a beta less than 1 mean?

High And Low Beta Value

A stock that is less volatile, or has fewer price swings, than the aggregate market has a beta value of less than one. A low beta value typically means that the stock is considered less risky, but will likely offer low returns as well.

What is a good beta number?

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.

What is Beta? - MoneyWeek Investment Tutorials

What is a good first hCG level?

With detailed statistical analysis (ROC curve) they concluded that an hCG level of 76 mIU/mL was a suitable cut-off point for predicting viable pregnancy with 80% sensitivity and 82% specificity. The positive predictive value for a viable pregnancy at this level was 87% and the negative predictive value was 74%.

What does a beta of 0.3 mean?

The beta for a stock describes how much the stock's price moves compared to the market. If a stock has a beta above 1, it's more volatile than the overall market. For example, if an asset has a beta of 1.3, it's theoretically 30% more volatile than the market.

What is considered a low beta?

A beta value that is less than 1.0 means that the security is theoretically less volatile than the market. Including this stock in a portfolio makes it less risky than the same portfolio without the stock. For example, utility stocks often have low betas because they tend to move more slowly than market averages.

Is a beta less than 1 GOOD?

A beta of 1 indicates that the security's price tends to move with the market. A beta greater than 1 indicates that the security's price tends to be more volatile than the market. A beta of less than 1 means it tends to be less volatile than the market.

How do you interpret beta?

Interpreting Beta

A β of 1 indicates that the price of a security moves with the market. A β of less than 1 indicates that the security is less volatile than the market as a whole. Similarly, a β of more than 1 indicates that the security is more volatile than the market as a whole.

What is a good beta in investing?

Stocks with a value greater than 1 are more volatile than the market (meaning they will generally go up more than the market goes up, and go down more than the market goes down). Stocks with a beta of less than 1 have a smoother ride as their moves are more muted than the market's.

What is considered a high beta?

What are high-beta stocks? A high-beta stock, quite simply, is a stock that has been much more volatile than the index it's being measured against. A stock with a beta above 2 -- meaning that the stock will typically move twice as much as the market does -- is generally considered a high-beta stock.

What does negative beta mean stocks?

A negative beta correlation means an investment moves in the opposite direction from the stock market. When the market rises, a negative-beta investment generally falls. When the market falls, the negative-beta investment will tend to rise. This is generally true of gold stocks and gold bullion.

What does a beta of 0.2 mean?

If your industry has a beta of 0.2, it is only 20% as risky as the index. That means if the S&P 500 loses 10%, your industry only loses about 2%.

What does a beta of 1.5 indicate?

Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock's excess return (over and above a short-term money market rate) is expected to move 1.5 times the market excess return).]

What does a beta of 0.9 mean?

A beta that is greater than 1.0 means that the fund is more volatile than the benchmark index. A beta of less than 1.0 means that the fund is less volatile than the index. In theory, if the market goes up 10%, a fund with a beta of 1.0 should go up 10%; if the market drops 10%, the fund should drop by an equal amount.

Do low beta stocks outperform?

Research has shown that low-risk or low beta (volatility) stocks outperform high-risk stocks. According to the efficient markets hypothesis, the stock market is thought to be highly efficient.

What is a good PE ratio for a stock?

There's no specific number that indicates expensiveness, but, typically, stocks with P/E ratios of below 15 are considered cheap, while stocks above about 18 are thought of as expensive.

Is a beta of 0.6 good?

We have taken beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters as well that can add value to the portfolio.

Does low beta mean low volatility?

If we perform the same exercise for the S&P 500, of the 252 stocks below the mean in volatility, less than 65% (159) qualify as low beta.

What is a good beta for a mutual fund?

Anything more than zero is a good alpha; higher the alpha ratio in mutual fund schemes on a consistent basis, higher is the potential of long term returns. Generally, beta of around 1 or less is recommended.

What stocks have a beta less than 1?

Low beta dividend stocks like Verizon Communications Inc. (NYSE:VZ), The Coca-Cola Company (NYSE:KO), and Lockheed Martin Corporation (NYSE:LMT) are highly popular among the smart investor circles. We selected high dividend for this article, ensuring that the beta value for each stock was less than 1.

What does hCG 0.6 mean?

An hCG level of less than 5 mIU/mL is considered negative for pregnancy, and anything above 25 mIU/mL is considered positive for pregnancy. An hCG level between 6 and 24 mIU/mL is considered a grey area, and you'll likely need to be retested to see if your levels rise to confirm a pregnancy.