For Immediate Release
Chicago, IL – October 29, 2021 – Stocks in this week’s article are Standard Motor Products, Inc. (
SMP Quick Quote SMP - Free Report) , National Storage Affiliates Trust ( NSA Quick Quote NSA - Free Report) , Ooma, Inc. ( OOMA Quick Quote OOMA - Free Report) and Clearway Energy, Inc. ( CWEN Quick Quote CWEN - Free Report) . Combat the Choppy Market with These 4 Low-Beta Stocks
Rolling out of coronavirus vaccines at a massive scale and a string of upbeat earnings reports have been aiding the stock market. Despite these tailwinds, the market has become volatile as investors are getting concerned about the fate of infrastructure and social-spending plans of President Biden.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will not only deliver healthy returns but also provide a shield against the choppy market conditions.
Beta measures the volatility or risk of a particular asset in comparison to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1818552/combat-the-choppy-market-with-these-4-low-beta-stocks Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. About Screen of the Week
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