What industries have a negative beta?

A standard example that is offered for a negative beta investment is gold, which acts as a hedge against higher inflation (which devastates financial investments such as stocks and bonds). It is also true that puts on stocks and selling forward contracts against indices will have negative betas.

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.

Do any stocks have negative beta?

Negative BETA stocks moved in the opposite direction of the index. A stock with a negative BETA fell when the index rose, and rose when the index fell. It is not common as most stocks move with their index, hence the expression “a rising tide lifts all boats.” Negative BETA stocks are an anomaly.

Is AMC 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 -4.16….Beta (Ref: DJIA)

Is negative beta good?

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. Many new technology companies have a beta higher than 1.

What causes a negative beta?

A negative beta correlation means an investment moves in the opposite direction from the stock market. When the market rises, a negative-beta investment generally falls. When the market falls, the negative-beta investment will tend to rise. This is generally true of gold stocks and gold bullion.

Is negative beta bad?

What is a good beta?

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.

What is a good stock beta?

A beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility. Beta is probably a better indicator of short-term rather than long-term risk.

What does a negative beta mean?

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 is the short interest on AMC?

AMC Entertainment (NYSE:AMC) Short Interest Data

How do you interpret a negative beta?

If the beta coefficient is negative, the interpretation is that for every 1-unit increase in the predictor variable, the outcome variable will decrease by the beta coefficient value.

What do industries that have negative betas do?

Industries that have negative betas demonstrate counter cyclical movements with the market as a whole. On a basic level, try to think about industries or subsegments that would benefit from a broad deterioration in the economy.

Are there any stocks that have a negative beta?

Negative-beta stocks, however, have odd behavior because they tend to move in the direction opposite the market’s movement. Most frequently, discussions of negative beta will center around bonds, because bond investments tend to rise when stocks fall and vice versa. For individual stocks, though, negative betas are fairly rare.

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.

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.