Negative Beta Stocks

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Stock Beta measures the volatility of an individual stock compared to the systematic risk of the broader market. Beta is used in the capital asset pricing model for estimating the expected returns of assets. The beta calculation is used to help investors understand whether a stock moves in the same direction as the S&P 500 Index. If the company has a high beta (>1), its stocks are more volatile than the market. Investing in such assets could increase the risk of the portfolio. If the stock market starts to fall, it is more profitable to have stocks in the portfolio with a beta of less than 1 and even a negative beta. This value means an inverse correlation with the market and lower market risks if a recession occurs. Here are the 15 largest companies with Eyestock rating and negative beta on American exchanges.

27.03.2024