Beta coefficientSmall online stock trading article about this value Beta coefficient is tool which can be used for selecting momentum stock picks for momentum day trading strategies . This value is simply the measurement of the volatility of a specific instrument. The higher the number is, the larger the moves you can expect from the instrument (like stocks). If the Beta value for a stock is 1, it means that the stock will make similar moves as the markets do. If it is 2 or 3, then you can expect the stock is making large intra-day moves. Opposite stocks with low value are good vehicles for investors who do not prefer big swings in stocks price and portfolio values. A very good tool for selecting stock with high or low volatility value is a free Yahoo stock screener. Here’s an example of a free stock screener result looking for U.S. stocks with a volatility higher than 3 and a price higher then $10 USD. It found 73 results.
Return from beta coefficient back to stock market trading tips
|
