What is an example of negative beta?
Stocks whose prices move in the opposite direction as the stock market will have negative β. Gold and gold stocks, for example, have a negative Beta Coefficient. Investors view gold as a “safe haven” that stores value. When the stock market declines, investors take money out of stocks and invest in gold.
What is a negative beta stock?
Negative beta: A beta less than 0, which would indicate an inverse relation to the market, is possible but highly unlikely. Some investors argue that gold and gold stocks should have negative betas because they tend to do better when the stock market declines. Beta of 0: Basically, cash has a beta of 0.
What happens if beta is negative?
A negative beta correlation would mean an investment that moves in the opposite direction from the stock market. When the market rises, then a negative-beta investment generally falls. When the market falls, then the negative-beta investment will tend to rise.
Does AMC have a negative beta?
Despite being rare, a stock may have a negative beta, which means the stock moves opposite the general market trend. AMC Entertainment Holdings Inc. shows a Beta of -4.66….Beta (Ref: DJIA)
| Levered beta | Unlevered beta | |
|---|---|---|
| 3-Year | 0.35 | 0.27 |
Is AMC a negative beta stock?
Why does AMC have a negative beta?
Negative BETA may be caused by anomalous trading activity (e.g., MEME stocks like $AMC or $GME), poor business performance during a rising market, or a counter-cyclical stock that moves against the market (e.g., discount retailers). Some stocks have declined during a rising market (e.g., Clorox or $CLX).
What companies have a negative beta?
Negative Beta Stocks
| Company | Current Price | Market Cap |
|---|---|---|
| APRN Blue Apron | $6.41 +5.3% | $151.28 million |
| IFMK iFresh | $1.03 +3.0% | $37.36 million |
| WTRH Waitr | $0.92 -3.8% | $107.60 million |
| EBON Ebang International | $1.86 -8.8% | $258.93 million |
What is the beta for AMC stock?
Performance Outlook
| Market Cap | 20.574B |
|---|---|
| Beta (5Y Monthly) | 1.27 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -15.59 |
| Earnings Date | Nov 01, 2021 – Nov 05, 2021 |
Is negative beta rare?
Here is the answer. Yes, beta can be negative. To see how and why, consider what beta measures: the risk added by an investment to a well diversified portfolio. By that definition, any investment that when added to a portfolio, makes the overall risk of the portfolio go down, has a negative beta.
What happens to a stock with a negative beta?
And finally, stocks with negative betas tend to move in the opposite direction relative to the broader market. When the S&P tumbles, stocks with negative betas will move higher, and vice versa. For example, a stock with a beta of 2.0 is usually twice as volatile as the broader market.
What does negative beta mean for S & P 500?
This page lists stocks with negative beta calculations. For example, a beta of -1.0 means that a stock moves precisely opposite the S&P 500. Learn more. CSV / Excel Export To export this table to CSV or Excel, upgrade to MarketBeat All Access. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks.
Which is the best example of a beta stock?
Perhaps no sectors embody the notion of beta like the technology and utility sectors. An electric utility company such as New York-based Con Ed (NYSE: ED) is the proverbial tortoise in the race against the hares, with a beta of 0.18. Its dividend grows just 1% every year but is as predictable as the sunrise.
Why is Dr Pepper a negative beta stock?
That relationship has fallen lately, which explains why the negative beta is relatively low, but many investors use gold miners like Agnico-Eagle as hedges to diversify their portfolio exposure. As a distant third in the soft-drink wars, Dr Pepper is understandably insulated from the moves of the overall market.