What does a 2.5 beta mean?
Beta indicates how volatile a stock's price is in comparison to the overall stock market. A beta greater than 1 indicates a stock's price swings more wildly (i.e., more volatile) than the overall market. A beta of less than 1 indicates that a stock's price is less volatile than the overall market.
Is High beta good for a stock?
A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns.
Is a 1.5 beta good?
A beta of less than 1.0 indicates that the investment is less sensitive to the market, while a beta of more than 1.0 indicates that the investment is more sensitive to the market. Generally, the higher the correlation between the investment and the market (as measured by R-squared), the more meaningful is beta.
What does a beta of 0.5 mean?
For example, a beta of 0.5 implies that a stock's movements will theoretically be about 50% of the index's movements. A stock with a beta of more than one is more volatile than the overall index. For example, a beta of 2.0 implies that the stock will move twice as much as the market.
Is Tesla a high beta stock?
In accordance with the recently published financial statements, Tesla Inc has a Beta of 2.08. This is 147.62% higher than that of the Consumer Cyclical sector and 147.62% higher than that of the Auto Manufacturers industry. The beta for all United States stocks is notably lower than that of the firm.
What is a good beta score?
Stocks with a value greater than 1 are more volatile than the market (meaning they will generally go up more than the market goes up, and go down more than the market goes down). Stocks with a beta of less than 1 have a smoother ride as their moves are more muted than the market's.
What is the beta for Tesla?
The Safety Score Beta is the first release of the Safety Score which is an assessment of your driving behavior based on five metrics called Safety Factors. These are combined to estimate the likelihood that your driving could result in a future collision.
What is the beta of Apple stock?
Stock Overview (U.S.: Nasdaq) | Barron's....Apple Inc.Volume95.7MDividend Yield0.69%Latest Dividend$0.23Ex-Dividend DateMay 6, 2022Beta1.217 more rows
What does a beta of 0.8 mean?
If the stock is more volatile than the market, its beta will be more than 1, and if it is less volatile than the market, its beta will be less than 1. For example, a stock with a beta of 0.8 would be expected to return 80% as much as the overall market.
What is a good beta for a stock portfolio?
A beta value that is less than 1.0 means that the security is theoretically less volatile than the market. Including this stock in a portfolio makes it less risky than the same portfolio without the stock.
What is a good PE ratio for stocks?
So, what is a good PE ratio for a stock? A “good” P/E ratio isn't necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.
Is beta a good investment?
In general, high beta means high risk, but also offers the possibility of high returns if the stock turns out to be a good investment. A negative beta coefficient, on the other hand, means the investment moves opposite of market direction.