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 measurement of volatility of specific instrument. The highest the number is, the larger moves you can expect from specific instrument (like stocks). If Beta value for stock is 1 it means that such stock will make similar moves as markets will do. If it is 2 or 3 then you can expect that such stock is making large intraday moves. As opposite stocks with low value are good vehicles for investors who does not prefer big swings in stocks price and portfolio values. Very good tool for selecting stock with high or low volatility value is free Yahoo stock screener. Here is example of free stock screener result looking for US stocks with volatility higher then 3 and price higher then 10 USD . It found 73 results.
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