|
PureBytes Links
Trading Reference Links
|
No - Beta is positive when correlation is positive (i.e. stock and market
move in the same direction) - beta is negative when correlation is inverse
(i.e. stock and market move in opposite directions). A beta of between 1
and -1 means a stock is allegedly less volatile than the market, a positive
beta greater than 1 or a negative beta greater than -1 is supposedly more
volatile than the market.
-----Original Message-----
From: UG <ug@xxxxxxxxxxxx>
To: szilassy@xxxxxxx <szilassy@xxxxxxx>; realtraders@xxxxxxxxxxxxxx
<realtraders@xxxxxxxxxxxxxx>
Date: Thursday, October 22, 1998 9:33 AM
Subject: Re: GEN/MKT: What is this called?
>Szilassy writes:
>> 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.
>
>*THAT'S* what I'm looking for. I thought beta was always positive. No?
>
>--
>========================================================================
>I finally got it all together--but then I forgot where I put it
>http://www.unixgeek.com/cgi-bin/motd.pl - PGP email preferred
>
|