Sentences with phrase «with higher beta stocks»

All five major indices closed well in the black with higher beta stocks showing the most strength.

Not exact matches

Recent grads with big dreams and uncertain futures often think of themselves as «high - beta stocks,» he writes:

High - beta stocks are simply the shares of companies whose stocks trade with above - average volatility — and like the twin peaks of a two - humped financial camel, these stocks carry both above - average risk and, potentially, above - average reward.

If you are a recent graduate, looking for a job, or simply trying to decide what to do next, you might believe that you are akin to a volatile high - beta stock — an awkward - looking mammal burdened with both extraordinary risk and, if you can just make all the right choices, potentially unlimited reward.

In order to achieve these type of gains, the stocks we swing trade are typically high beta, with plenty of volatility.

For example, investors typically equate higher beta or riskier «glamor stocks» with momentum.

NASDAQ stocks, especially those with high betas, fell last Thursday because of a JPMorgan equity research note expressing caution about Baidu's (NASDAQ: BIDU) 3Q revenue estimates.

But instead of dividing the universe of stocks into 10 equal groups he picked 100 stocks with the highest betas and another group of 100 with the lowest betas.

My concern with such a small company (market cap of $ 21 million), is that there is a lack of liquidity and the stock has a high beta at a time when the overall market has shown signs of weakness.

«Theory predicts that stocks with high betas do better in the long run than stocks with low betas,» co-author and professor of finance Scott Murray said in a press release.

Looking at the 900 companies in S&P's mid and large - cap indexes, the top quarter of stocks with the highest betas are down 4.28 percent.

A stock with a «high beta» is one that a buyer believes could pay big dividends down the road.

The barbell strategy is also increasingly used with reference to stock portfolios and asset allocation, with half the portfolio anchored in defensive, low - beta sectors or assets, and the other half in aggressive, high - beta sectors or assets.

If it's a high beta (i.e. volatile) stock, or has earnings coming out, or if your position is too big for your portfolio then you may not sleep well with unhedged exposure.

Beyond beta, Fama and French found that small company stocks often gain higher returns that those of larger companies, while value stocks gain higher returns than those associated with growth stocks.

The issue with high dividend stocks is that typically their betas are so low that the volatility from the underlying call option is not going to buy you much.

Black (1972) found that a pricing model in which borrowing is restricted was consistent with test results, reported by Jensen, Black, and Scholes (1972, p. 4), which indicated that high - beta stocks have negative alphas and low - beta stocks have positive alphas.

Stocks with high betas bounce around more than average, while stocks with low betas are relatively sStocks with high betas bounce around more than average, while stocks with low betas are relatively sstocks with low betas are relatively steady.

Private market investments provide vital diversification into assets uncorrelated with stocks and bonds, which can improve risk - adjusted returns through higher yield potential, lower beta, and greater protection from market volatility.

Stocks with high betas include tech, mining, oil and gas, and highly leveraged firms.

Filed Under: Investing Tagged With: Beta, Beta Stocks, Etfs, Funds, High And Low, Investing, Stock Market, Trading, Volatility Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

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.

Explore differences between accessing high beta stocks with either mutual funds or ETFs, as well as the best options for long - term holds and trading.

Some smart beta dividend ETFs do diversify across the safety spectrum of small to large cap stocks, with large cap providing the highest margin of safety.

The Ladies also look at timeliness (a prediction of how fast a stock's price will grow compared to other stocks - stocks are given a number of 1 to 5, with one being the highest and the best); safety (the volatility of a stock's price around its own long term trend); beta (the volatility of a stock's price relative to the total market) and upside - down ratios (the ratio between the projected potential gain per share divided by the risk of loss per share).

The low volatility anomaly research shows that in contrast to established academic research stocks with lower volatility (or beta) actually outperform higher volatility.

My portfolio represents a balanced portfolio of Canadian dividend paying stocks across most sectors, with a low beta (volatility) and high quality operations.

For example, a single - factor smart beta product may be used as part of a completion strategy in order to lend more exposure to lower beta stocks to an equity portfolio with a higher risk profile,» explains Mellon Capital.

In a crash, the price momentum is typically concentrated in groups of stocks that the market particularly loathes and fears more than others, often distressed companies with high betas.

This means the fund may include companies that are highly correlated with the market (that is, stocks with relatively high beta).