For Immediate Release
Chicago, IL – October 9, 2018 - Stocks in this week’s article are Range Resources Corporation (RRC - Free Report) , lululemon athletica inc. (LULU - Free Report) , North American Construction Group Ltd. (NOA - Free Report) , ChannelAdvisor Corporation (ECOM - Free Report) and Southwest Gas Holdings, Inc. (SWX - Free Report) .
Tide Over Market Volatility with These 5 Low-Beta Stocks
Investment strategies are formed on thorough research and in-depth understanding of industries. However, the general belief is that only risky stocks turn out to be profitable investments. Notably, risky portfolios only prove rewarding when the market is bullish.
Meanwhile, research shows that even less risky securities can churn out handsome returns if some additional parameters are added.
Meaning of Beta
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 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 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/326652/tide-over-market-volatility-with-these-5-low-beta-stocks
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