Sentences with phrase «beta measures its volatility»

Beta measures volatility, but it does not measure correlation.

Not exact matches

In a falling market, you want the large - cap dividendpaying stock that has low beta (a measure of volatility), he says.

From our definition there flows an important corollary: The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability — the reasoned probability — of that investment causing its owner a loss of purchasing power over his contemplated holding period.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio, in comparison to the market as a whole.

Our paper examines a comprehensive suite of volatility measures including actual volatility, volatility implied by option pricing, beta, credit default spreads, preferred stock yields and earnings price ratios.

In conjunction with stock valuation ratios like the price - to - earnings ratio and the price - to - earnings - growth ratio, a stock's measure of volatility known as beta can help investors build a diversified...

Unlike beta, which simply measures volatility, alpha measures a portfolio manager's ability to outperform a market index.

Beta Beta measures a stock's price volatility relative to the S&P 500.

Beta measures a stock's price volatility relative to the S&P 500.

Beta measures a stock's price volatility relative to the market as a whole.

Volatility can be measured using raw volatility, beta, or idiosyncratic vol, to name just a feVolatility can be measured using raw volatility, beta, or idiosyncratic vol, to name just a fevolatility, beta, or idiosyncratic vol, to name just a few methods.

They examine three measures of return comovement for each asset class: average pairwise correlation, average beta relative to the world market and average idiosyncratic volatility.

«When people do try to measure investment risk, they typically assess the historic volatility of an investment compared to that of the overall market (known as beta), which derives from capital asset pricing theory.

«The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability — the reasoned probability — of that investment causing its owner a loss of purchasing - power over his contemplated holding period.»

Instead, the measures of his success have been limited volatility, the avoidance of deep drawdowns, restrained beta, and high alpha.

The beta coefficient of a stock or stock portfolio is the measure of volatility of a -LSB-...]

The beta coefficient is a measure of a stock's volatility, or risk, versus that of the market; the market's volatility is conventionally set to 1, so if a = m, then βa = βm = 1.

Stock beta ratings are a commonly used measure stock - market volatility.

Valuation Summary: Miscellaneous Factors Beta Beta measures a stock's price volatility relative to the S&P 500.

Beta measures a stock's price volatility relative to the market as a whole (represented by the S&P 500).

Finally, if you want to reduce the wild price swings in your portfolio then look for companies with a low beta — a measure of volatility.

Miscellaneous Factors Beta Beta measures a stock's price volatility relative to the S&P 500.

While this ETF uses beta scores to assess volatility and give investors exposure to a lower - risk portfolio of stocks, beta has its own limitations as a measure of risk.

Beta: It usually measures the market volatility of the fund.

Beta — a measure of volatility of a stock in comparison to the market as a whole; the risk of owning stocks in general; or an investment's sensitivity to the market.

Initially, it was assumed to be captured by a single factor, volatility, which was measured using something called beta.

Beta is a measure of volatility of a security or a portfolio in comparison to the Market as a whole.

Miscellaneous Factors Beta measures a stock's price volatility relative to the S&P 500.

Beta measures a stock's price volatility relative to the S&P 500.

Valuation Summary: Miscellaneous Factors Beta measures a stock's price volatility relative to the S&P 500.

In conjunction with stock valuation ratios like the price - to - earnings ratio and the price - to - earnings - growth ratio, a stock's measure of volatility known as beta can help investors build a diversified...

In a falling market, you want the large - cap dividendpaying stock that has low beta (a measure of volatility), he says.

Finally, the fund failed to outperform both the SPY and OEF in terms of traditional measures, i.e. the annualized return, volatility, alpha and beta, or Sharpe and Sortino ratios:

The beta coefficient of a stock or stock portfolio is the measure of volatility of a stock or stock portfolio's return versus that of the rest of the market.

The beta measures the past volatility of the stock and has no bearing on what the stock does in the future.

Alpha is often used in conjunction with beta, which measures volatility or risk.

In a previous article, I detailed how research from Russell Investments had proven that the lowest risk stocks, as measured by the beta indicator of volatility, had the highest rewards over time for long - term investors.

Beta: a measure of the volatility of a stock (or portfolio of stocks) and how closely it correlates with the overall market bID price: the highest price potential buyers are willing to pay for a stock.

A close cousin of alpha, beta, is designed to measure systematic risk or volatility.

Common risk measures in equities include the volatility of price return and beta measuring price sensitivity to market.

Beta can be measured with respect to a single security — namely, its volatility relative to the broader market — or as it relates to an entire portfolio.

Beta becomes a less valuable measure of volatility if calculation methodology does not match investor needs, if correlation to the benchmark index is low or if tail events are incorrectly included or excluded from calculation.

However, beta is an imperfect measure of volatility in some circumstances, and it can be misleading for investors who are not careful to identify the limits of the metric's explanatory value.

Volatility can be measured using standard deviation and beta.

Beta is a measure of a stock's volatility in relation to the market.

Beta is a measure of volatility compared to the market.

Beta measures a stock's price volatility relative to the market as a whole.

Volatility is often measured by «beta», which compares the volatility of the stock or ETF in question to its most relevant index, in this case thVolatility is often measured by «beta», which compares the volatility of the stock or ETF in question to its most relevant index, in this case thvolatility of the stock or ETF in question to its most relevant index, in this case the S&P 500.

Beta is a measure of an individual stock's price volatility against a broader market measure, which is typically an index like the S&P 500.