For Immediate Release
Chicago, IL – May 15, 2020 - Stocks in this week’s article are The Clorox Company (CLX - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , Eli Lilly and Company (LLY - Free Report) , Gold Fields Ltd. (GFI - Free Report) and AngloGold Ashanti Ltd. (AU - Free Report) .
Fight Off Coronavirus Blues with These 5 Low-Beta Stocks
The market has become extremely volatile owing to the ongoing coronavirus pandemic. Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities could not only deliver healthy returns but could also provide a shield against market volatility
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/925062/fight-off-the-coronavirus-blues-with-5-lowbeta-stocks
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Strong Stocks that Should Be in the News
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