[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: GEN/MKT: What is this called?



PureBytes Links

Trading Reference Links

But inverse correlation means the opposite in downtrending markets - with a
1% drop in the broader market, one would expect a beta of -2 to result in a
2% increase in the price of the given stock.  Basically, such a stock is
twice as volatile as the broader market, in the exact opposite direction.
-----Original Message-----
From: steven poser <swp@xxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Thursday, October 22, 1998 8:45 AM
Subject: Re: GEN/MKT: What is this called?


>UG -
>
>That is exactly what beta means. If a stock has a beta of -2 to the
>market and the market rallies 1%, the stock is expected to fall 2%. I
>know, I worked on the Merrill Lynch Beta System in a previous life when
>I was a computer programmer.
>
>Steve
>
>UG wrote:
>>
>> Is there an indicator that measures movement with respect to the market?
>> Not Beta; that's volatility.  I'm looking for something that would vary
>> in value from a negative number to a positive one; a value of 1 would
>> indicate the security rises in price when the market rises in price, and
>> about the same amount.  A value of -2 would indicate the security drops
>> in price when the market rises (and vice versa), and about double the
>> amount.
>>
>> Does such an indicator exist?
>>
>> --
>> ========================================================================
>> If God had meant us to be naked, we would have been born that way
>> http://www.unixgeek.com/cgi-bin/motd.pl - PGP email preferred
>