WebOct 20, 2024 · Beta of less than 1: the stock is less volatile and less reactive to index movement. For example, if Nifty moves down by 2%, the stock price falls at a higher rate. Beta equal to 1: this means the stock is as volatile as Nifty50. If the index increases, the stock is also likely to go up at a similar pace, and vice versa. WebSep 16, 2024 · Beta measures how much an investment will move compared to its benchmark. A stock with higher beta may offer greater returns, but can also lead to larger losses. Beta may be helpful for making ...

Is a Negative Beta Coefficient More Risky Than a Positive …

WebNov 30, 2024 · A negative beta can have a number of impacts on stocks. First, it may make the stock less attractive to investors who are looking for stocks that will perform … WebFor example, a stock with a beta of 1.2 is 20% more volatile than the market. So if the S&P 500 rises 10%, a stock with a beta of 1.2 is expected to rise by 12%. Of course, beta works both ways. If the S&P 500 falls 10%, a stock with a beta of 1.2 is expected to fall by 12%. Generally, the higher a stock's beta, the more volatile it is. popfits

How does Beta reflect systematic risk? - Investopedia

WebMay 4, 2015 · Yes, beta can be negative. Beta shows the performance of an asset relative to the market, i.e. an asset with a beta of 2 will always perform double that of the market … WebFeb 9, 2015 · There can be longer term effects only picked up on the longer scale. Stock X could day-to-day with a (average) beta of 1 to the stock market, but could have even a negative beta year-to-year with the market if the stock is counter-cyclical to longer scale trends on the market. So beta can change with the time scale used in the calculation. pop fit tights