What is Amazon's beta?

Amazon Beta Analysis

Amazon's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded.

What does a company's beta mean?

Beta is a concept that measures the expected move in a stock relative to movements in the overall market. 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.

What does a beta of 1.32 mean?

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.

What beta is too high?

A beta of 1.5 is considered to be a high beta stock. This is because a beta greater than 1 indicates that the stock is more volatile than the market, and therefore carries a greater level of risk.

What are the pros and cons of beta?

Advantages and Disadvantages of Beta. The advantage of using beta is that it is useful way to gauge an asset's volatility in relation to the overall stock market. The disadvantage of using beta is that it is based on historical data and may not necessarily be an accurate predictor of future volatility.

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What does beta tell us about a stock?

Beta is a measure of a stock's historical volatility in comparison with that of a market index such as the S&P 500. Stocks with a beta above 1 tend to be more volatile than their index, while stocks with lower betas tend to be less volatile.

Is a beta of 1.5 good?

A beta value of 1.5 indicates that the price of the stock is more volatile than the market. In fact, it is assumed to be 50% more volatile than the market. Tech stocks and small caps tend to have high betas.

How high will Amazon stock go?

Stock Price Forecast

The 44 analysts offering 12-month price forecasts for Amazon.com Inc have a median target of 134.50, with a high estimate of 160.00 and a low estimate of 90.00. The median estimate represents a +32.95% increase from the last price of 101.17.

What's the highest Amazon stock has been?

Amazon stock hits its highest price, company now worth more than $1.5T. Amazon.com, Inc.

What index is Amazon in?

Amazon.com's index membership is Nasdaq 100, Russell 1000, NASDAQ Composite, S&P 500 Consumer Discretionary, Russell 3000, S&P 100, S&P 500, and Investing.com United States 500.

What is an acceptable beta?

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. For example, utility stocks often have low betas because they tend to move more slowly than market averages.

What is the ideal beta?

Such stocks come with a low-risk factor and are considered stable against the volatility of the market. β=1: BETA value equal to 1 signifies that the stock is ideally co-related to the stock market or the indices.

What does a beta of 0.70 mean?

Any beta less than 1 denotes lower volatility and higher than 1 denotes more volatility compared to the benchmark index. For example, if your mutual fund portfolio XYZ has a beta of 0.70, it denotes lower volatility. This means that for every rise or fall of 1 in the market, the value of XYZ may rise or fall by 0.70.

Should you buy stock with low-beta?

The lower the Beta value, the less volatility the stock or portfolio should exhibit against the benchmark. This is beneficial for investors for obvious reasons, particularly those that are close to or already in retirement, as drawdowns should be relatively limited against the benchmark.

Is a higher beta better for stocks?

High-beta stocks tend to be riskier but provide the potential for higher returns. Low-beta stocks pose less risk but typically yield lower returns.

What is a bad beta in stocks?

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.

What is Apple's beta?

Help make the next releases of iOS, iPadOS, macOS, tvOS, watchOS and HomePod software our best yet. As a member of the Apple Beta Software Program, you can take part in shaping Apple software by test-driving pre-release versions and letting us know what you think.

What are risks to a beta?

What Is Beta Risk? Beta risk is the probability that a false null hypothesis will be accepted by a statistical test. This is also known as a Type II error or consumer risk. In this context, the term "risk" refers to the chance or likelihood of making an incorrect decision.

Is beta good or bad?

A beta lower than one suggests that a stock is less risky than the market. A beta of . 5 suggests that the stock is 50% less volatile than the market. Adding this type of stock to a portfolio lowers the overall risk but has a similar effect on potential return.

Which industry has low beta?

The sectors that ranked lowest in beta are about what we'd expect. Consumer staples (things people buy in good times and bad), as well as utilities (the light and power we take for granted in the developed world), led the way with betas of 0.57 each.

What beta is good for day trading?

In trading, a beta of 1 has been found to indicate that the price of a security is moving with the market while having less than 1 translates to a less volatile market. On other hand, a beta that is greater than 1 helps to show that the security's price is more volatile than the market.

What is an example of a beta?

For example, if beta is 1.3 and the market is expected to move up by 10%, then the stock should move up by 13% (1.3 x 10). Beta is the key factor used in the Capital Asset Price Model (CAPM) which is a model that measures the return of a stock.