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Sagot :
These stocks tend to have low betas.
What does low beta means in stock market?
If a security's beta value is less than 1.0, it is thought that it is theoretically less volatile than the market. A portfolio that includes this stock is less hazardous than one that does not. Utility stocks, for example, usually have low betas because they move more slowly than market averages.
If a stock's beta value is 1, the price movement of that stock is very market-dependent. Investing in equities with betas of 1 carries a systemic risk. But no illogical risk can be found using the beta calculation. A portfolio can include a stock with a beta of 1.0 without raising risk or the likelihood that the portfolio would provide excess return.
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