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WHAT IS BETA
HOW CAN WE APPLY BETA
DO WE HAVE ADD ON ADVANTAGE OF BETA
HOW CAN WE APPLY BETA
DO WE HAVE ADD ON ADVANTAGE OF BETA
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hvp -
Re: Beta
Beta is a quantitative term that measures a stocks movement vs an chosen index..As a simple example,if a stock has a beta of 2,for a 2% move in an index,the stock will move 4%...As you can see,higher beta implies higher volatility.Please note,I am simplifying...Originally posted by harsvpat1
WHAT IS BETA
HOW CAN WE APPLY BETA
DO WE HAVE ADD ON ADVANTAGE OF BETA
If you want to dig a bit deeper,you could look at Beta as
Correlation x Volatility of stock/volatility of index...
If you look at it in that manner,a stock with ZERO correlation will have Zero beta..
By and large,if you are a GOOD trader/timer,you should trade stocks with a higher beta...
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