Which industry has highest beta?

While Information Technology had the highest historical beta and risk, other cyclical sectors such as Consumer Discretionary and Industrials showed similar properties, albeit to a lesser extent.

Which industries have the highest beta?

Typical high beta stocks

A quick filter of the top 50 companies by beta in the Nifty 500 shows a few sectors come up repeatedly like financial services, real estate, automobile, or cyclical sectors such as capital goods, metals, power and construction.

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 are industry betas?

Industry Beta Approach Overview

Beta (β) is a metric that represents the sensitivity of a security or portfolio to systematic risk, i.e. the relative volatility compared to the broader market (S&P 500).

Why do companies have high beta?

A higher beta generally indicates that a stock is more volatile than the market, and therefore carries a greater level of risk. This can also indicate that the stock has the potential for higher returns.

Understanding Beta | Investopedia

What is high beta examples?

A high beta index refers to a market index made up of stocks with higher-than-average volatility compared to the overall stock market. Examples include the S&P 500 High Beta Index, the TSX Composite High Beta Index, the Hang Seng High Beta Index, and the S&P Emerging Markets High Beta Index.

Do growth stocks have higher beta?

Value investors want high beta so they can profit by buying and selling at cyclical lows and highs. Growth investors want low beta so that the stock's performance reflects mainly underlying growth trends.

Why do different industries have different betas?

These are the factors due to a company changes its product line, changes its technology, or there is a changes in the market, such operational changes in the company or changes in the business environment particular to the company.

Where can I find beta of industry?

Bloomberg (available in the Business Library): Type a ticker symbol, hit the Equity key, type BETA, and hit the GO key (e.g. AAPL US <Equity> BETA <GO>).

Why companies in the same industry have different betas?

Different firms in the same industry do have very different betas. A few reasons are as follows: Firms have different capital structures and different capital structures may have different betas. A firm's profitability will greatly influence its beta.

Do small companies have higher beta?

It is observed for the smaller firms, their earnings stream shows more variability, which is highly correlated with the market, thus leading to higher beta.

What are high and low beta sectors?

A stock that has a market value above 1.0 is considered high-beta, whereas a stock with a market value lower than 1.0 is considered as low-beta.

Which S&P 500 companies have the highest beta?

How do you find high beta stocks?

Do highly cyclical stocks have higher betas?

Cyclicals tend to have high beta values, which are usually higher than 1. A beta of 1.5 means if the market falls 10 per cent, the stock is likely to fall 15 per cent.

What factors determine the beta of a stock?

What does a high beta mean for a stock?

A beta above 1.0 means the stock will have greater volatility than the market, and a beta less than 1.0 indicates lower volatility. Volatility is usually an indicator of risk, and higher betas mean higher risk, while lower betas mean lower risk.

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.

How high is too high of a 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.

What is a safe beta for stocks?

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.