Sentences with phrase «beta value»
Perhaps most important is it's low beta value, which means it does not tend to move in the overall direction of the stock market.
financialcanadian.com
A fund with beta value more than 1 would move more volatile than the market.
If beta value is less than 1 it means fund will be less volatile than the benchmark.
A portfolio filled with stocks that have beta values greater than 1.0 will likely whip up and down much more than a portfolio filled with low beta stocks.
Beta values included in the text below relate to the model in which the relevant predictor was entered, unless these changed meaningfully in successive models (as indicated).
i.e. if market moves up 100 % a fund with beta value of 1.5 would move up by 150 % and if market comes down by 20 % the fund will come down by 30 %.
Consider an investor who hates drawdowns; he / she would know to stay out of Smart Beta Value funds if educated as they tend to draw down further than the market.
A study by Hewitt Ennis Knupp provides a good explanation of how to interpret inflation beta values:
The historical performance of a Smart Beta value approach shows great promise.
Finally, This below data sourced from the Kenneth R. French data library at Bloomberg posit a compelling picture for Smart Beta value tilt investors.
A lower beta value means lower volatility.
The replicate sample was examined for average correlation of beta values between plates and was found to be greater than 0.99.
Standardized beta values are presented for each of the predictors, which can be squared to estimate the amount of variability associated with that predictor within each model.
Along with providing market diversification by having an amazingly low beta value, Fairfax provides some excellent geographic diversification due to it's significant presence in India.
Every S&P company will have, say, 3,000 beta values.
Today the Universe is in a classical - like state, so now the beta value should be near zero, and estimates performed by other groups of physicists indeed suggest that it does not exceed 0.01.
This index, with a beta value of very close to 1 (by definition), clearly does not truly reflect the fund's composition or risk profile throughout the year.
A stock with a beta value of 1.2 has moved approximately 120 % for every 100 % in the benchmark, contingent on the price level.
Here, we'll compare the beta values obtained from financial sources and explain how to compute beta using Microsoft Excel.
The error bars (based on standard errors) roughly estimate of how much each beta value could reasonably vary due to noise in the data.
Sizing Up Defensive Stocks The key characteristics that you can use to describe defensive stocks are typically low price - to - earnings ratios (P / E) and a low beta values.
According to Google Finance, Fairfax has a beta value of -0.08, which provides some nice diversification against my other holdings:
As you say, it seems using past data could help assign a risk level, look to beta values if you believe in that.
Since the S&P 500 is used as a proxy for the market then the S&P 500 is assigned a beta value of 1.
Both of these stocks have a Beta value fairly close to that of the S&P 500, meaning they are about as volatile as the VIX itself.
Accordingly, after preprocessing to normalize the beta values, all samples were examined for batch and chip effects.