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.

What does a 0.8 beta mean?

For example, a stock with a beta of 0.8 would be expected to return 80% as much as the overall market. A stock with a beta of 1.2 would move 20% more than the overall market. There is more than one way to calculate betas.

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.

Is a beta lower 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.

What does beta 1.0 indicate?

Beta Value Equal to 1.0

If a stock has a beta of 1.0, it indicates that its price activity is strongly correlated with the market. A stock with a beta of 1.0 has systematic risk. However, the beta calculation can't detect any unsystematic risk.

What is Beta? - MoneyWeek Investment Tutorials

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.

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 low risk beta?

A low beta value typically means that the stock is considered less risky, but will likely offer low returns as well. The higher the beta value, the more risk you take as an investor, but the higher your chances are of a big return as well.

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 does negative beta mean for a stock?

A negative beta correlation would mean an investment that moves in the opposite direction from the stock market. When the market rises, then a negative-beta investment generally falls. When the market falls, then the negative-beta investment will tend to rise.

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%.

At what hCG level will I miscarry?

In the event of a miscarriage, hCG levels typically decrease from previous measurements. For example, a baseline level of 120 mIU/mL that's dropped to 80 mIU/mL two days later can indicate the embryo is no longer developing and the body isn't producing more hormones to support its growth.

What should be the hCG level at 2 weeks pregnant?

Within the first 2-4 weeks after fertilization, hCG usually doubles every 48-72 hours. An increase of at least 35% in 48 hours in early pregnancy is still considered normal. Below 1,200 mIU/ml, hCG usually doubles every 48-72 hours, but 35%+ is still normal.

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 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 0.5 mean?

For example, a beta of 0.5 implies that a stock's movements will theoretically be about 50% of the index's movements. A stock with a beta of more than one is more volatile than the overall index. For example, a beta of 2.0 implies that the stock will move twice as much as the market.

What is a good beta score for a stock?

For those investors seeking high Beta, stocks with values in excess of 1.3 would be the ones to seek out. These securities would offer investors at least 1.3X the market's returns for any given period. The numerator is the covariance of the asset in question while the denominator is the variance of the market.

What would be the beta of an aggressive common stock?

An "aggressive" common stock would have a "beta" equal to zero. As per the capital-asset pricing model (CAPM), a security's demanded in return is similar to the risk-free rate and add a bonus equivalent to the security's beta. The higher the beta, the higher the security required.

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 companies have a low beta?

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.

What is β in statistics?

Beta (β) refers to the probability of Type II error in a statistical hypothesis test. Frequently, the power of a test, equal to 1–β rather than β itself, is referred to as a measure of quality for a hypothesis test.

What is β in regression?

In statistics, standardized (regression) coefficients, also called beta coefficients or beta weights, are the estimates resulting from a regression analysis where the underlying data have been standardized so that the variances of dependent and independent variables are equal to 1.

What is beta risk?

Beta risk is the probability that a false null hypothesis will be accepted by a statistical test. This is also known as a Type II error or consumer risk. In this context, the term "risk" refers to the chance or likelihood of making an incorrect decision.

Should you invest in high beta stocks?

High beta stocks can be great investments in bull markets since they are expected to outperform the S&P 500 by a marginal amount. They do however require a great deal of active management due to their market sensitivity. These are highly volatile and therefore risky investments in isolation.