For Immediate Release
Chicago, IL – November 14, 2018 - Stocks in this week’s article are Papa Murphy’s Holdings, Inc. , Penumbra, Inc. (PEN - Free Report) , Tesla, Inc. (TSLA - Free Report) , Ameren Corporation (AEE - Free Report) and Arbor Realty Trust (ABR - Free Report) .
5 Low-Beta Stocks to Beat Market Volatility
It is not easy to come up with an investment strategy that will consistently reward investors with above-average returns. Thorough research and in-depth industry knowledge are required to develop such a strategy.
In this article we show that risky stocks do not always turn out to be profitable. Securities with lower volatility than the market can also generate lucrative returns.
Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here).
If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility.
Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing.
However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/337256/5-lowbeta-stocks-to-beat-market-volatility
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