For Immediate Release
Chicago, IL – January 9, 2020 – Stocks in this week’s article are Pan American Silver Corp. (PAAS - Free Report) , Arcosa Inc. (ACA - Free Report) , North American Construction Group Ltd. (NOA - Free Report) , América Móvil SAB de CV (AMX - Free Report) and Helen of Troy Limited (HELE - Free Report) .
Buy These 5 Low-Beta Stocks as U.S.-Iran Tensions Mount
Escalating tensions between Washington and Tehran have made the broader equity market extremely volatile. After the recent U.S. airstrike killed Iran’s top commander General Qasem Soleimani in Baghdad, Tehran retaliated by firing more than a dozen ballistic missiles at U.S. troops in Iraq.
Thus, it would be ideal to invest in low-beta stocks as they are less correlated to the market and thus tend to be less volatile.
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/707848/buy-these-5-lowbeta-stocks-as-usiran-tensions-mount
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