Sentences with phrase «high volatility stocks»

In a strong bull market, higher volatility stocks tend to outperform lower volatility stocks.

Several readers pointed out that using a fixed percentage stop made it more likely for high volatility stocks to hit the stop thus not performing as well.

In the two previous posts, we have looked at low volatility stocks vs. high volatility stocks with trailing stops.

A significant body of research confirms the efficacy of investing in low volatility stocks over high volatility stocks.

Short term trading strategies tend to do best when they focus on high volatility stocks.

In the Part 1 of this series we discussed the evidence that has come to light over the past 40 years that shows us that low volatility stocks out - perform high volatility stocks.

High volatility stocks with high short interest had extraordinarily poor returns.

The low volatility premium is measured by the excess returns of low volatility stocks over high volatility stocks.

The top quintile of low volatility stocks delivered average monthly excess returns of.52, whereas the top quintile of high volatility stocks delivered excess returns of.17, a 300 % difference.

In the absence of access to leverage, investors may overpay for high volatility stocks in an attempt to increase risk in their portfolios, potentially leading lower volatility stocks to become more attractively valued and outperform in the future.

Specifically, from 1935 to1961, Black found low volatility stocks outperformed high volatility stocks.

Abnormal Returns: In the paper you note how agency issues are at the heart of why investment managers favor high volatility stocks.

The idea is that this tendency leads to a preference for lottery - like stocks with a small chance of a very high payoff, and this preference, in turn, drives up the prices of high volatility stocks disproportionately, suggesting future underperformance.

High volatility stocks with low short interest had extraordinarily positive returns.

Research in finance has aggregated together cross-listed and non-cross-listed stocks and finds that, on average, value stocks outperform growth stocks, small cap stocks outperform large cap stocks, low liquidity stocks outperform large liquidity stocks and low volatility stocks outperform high volatility stocks.

Some of these phenomena are similar across equities and fixed income: many investors are averse to leverage and therefore gravitate to riskier stocks in their search for high returns, which can lead to over-buying of higher volatility stocks.

Less volatile stocks tend to outperform their higher volatility counter parts in bear markets, while the high volatility stocks tend to outperform in bull markets.

As we saw earlier, Lazard is a high volatility stock.

Jeff Chiappetta: Look for stocks with higher volatility, because the higher volatility stocks means you might be able to get a little bit more premium on those options.

Keep in mind this is exactly counter to what one would expect — that high volatility stocks should have higher returns.

As you can see, high volatility stocks had noticeably lower payoffs only in the popular quartiles.

As we saw earlier, Lazard is a high volatility stock.

For equity markets, that means that high volatility stocks are expected to outperform low volatility stocks.

Low volatility stocks tend to trade at a discount to the broad market and, of course, to high volatility stocks; the magnitude of the discount is highly variable, 2 but the low volatility effect has nonetheless been durable (see Table 1).

Readers pointed out that this stop method favored the lower volatility stocks because the higher volatility stocks are getting stopped out early.

% p / l» is better for the highest volatility stocks but not by that much.

You are correct, CNQ is higher quality than Cenovus, but I would like to eliminate some high volatility stocks from my portfolio.

This stop method favors the higher volatility stocks because they should move more in the same amount of time.

Obviously, higher volatility stocks with wild price swings will need looser stops.

I think you'd have to believe in the tooth fairy to believe that you could easily outperform the market by seven - percentage points per annum just by investing in high volatility stocks.»

From what I read some time ago, Robinhood offers 50 % margin but they reduce it if it is a higher volatility stock.

Less volatile stocks tend to outperform their higher volatility counter parts in bear markets, while the high volatility stocks tend to outperform in bull markets.

You'll get more buying power for low volatility stocks than medium or high volatility stocks.

You may be restricted on the amount that you are able to sell when you purchase a high volatility stock.

Any Gold Buying Power unavailable due to medium or high volatility stocks will be in Gold Withheld.

High volatility stocks will decrease the amount of Day trade buying power that you are issued at the start of the day.