QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Low Beta Stocks

Beta is the a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Beta is considered one of the few data points that can be beneficial for practitioners of both fundamental analysis and technical analysis. This page lists stocks that have unusually low beta calculations, meaning there is little correlation between the price moves of these stocks and the S&P 500. Learn more about low beta stocks.

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CompanyCurrent PriceBetaPE RatioMarket CapVolumeAverage VolumeIndicator(s)
Tio Tech A stock logo
Tio Tech A
0.0127.51$437.94 million900359,086News Coverage
Primavera Capital Acquisition Co. stock logo
Primavera Capital Acquisition
0.0116.21$287.56 million351,998103,184Gap Down
High Trading Volume
Valor Latitude Acquisition Corp. stock logo
Valor Latitude Acquisition
0.0133.16$295.55 million085,021
Lanvin Group Holdings Limited stock logo
Lanvin Group
0.0116.21$700.70 million351,998201,848Upcoming Earnings
Gap Down
Frontier Investment Corp stock logo
Frontier Investment
0.0139.66$257.75 million4,40641,340News Coverage
ST Energy Transition I
0.0115.40$316.09 million37,499317,107Upcoming Earnings
Data Knights Acquisition Corp. stock logo
Data Knights Acquisition
0.02364.67$82.82 million118,076864Upcoming Earnings
High Trading Volume
International Seaways, Inc. stock logo
International Seaways
0.023.29$1.87 billion463,365654,672Analyst Report
Short Interest ↑
Citizens Holding stock logo
0.028.27$71.92 million5793,891
Pathfinder Bancorp, Inc. stock logo
Pathfinder Bancorp
0.036.28$60.45 million1,7952,375Positive News
Gap Down
Oxbridge Acquisition
0.0324.11$45.35 million221,652
Black Spade Acquisition Co stock logo
Black Spade Acquisition
0.0416.61$217.64 million537,75379,921News Coverage
High Trading Volume
Siebert Financial Corp. stock logo
Siebert Financial
0.0432.00$72.82 million30,991174,700Analyst Report
ZTO Express (Cayman) Inc. stock logo
ZTO Express (Cayman)
0.0423.80$18.03 billion8.33 million2.72 millionAnalyst Report
News Coverage
Gap Up
High Trading Volume
Palomar Holdings, Inc. stock logo
0.0423.70$1.27 billion142,839146,548Analyst Upgrade
TDCX Inc. stock logo
0.0416.47$1.20 billion30,26676,305
Fanhua Inc. stock logo
0.0529.62$413.61 million30,21428,892Upcoming Earnings
Analyst Report
Cullman Bancorp, Inc. stock logo
Cullman Bancorp
0.0619.98$78.15 million11,744News Coverage
Full Truck Alliance Co. Ltd. stock logo
Full Truck Alliance
0.07117.82$6.51 billion2.10 million6.35 millionUpcoming Earnings
Procaps Group S.A. stock logo
Procaps Group
0.0811.00$508.82 million8,46829,672Analyst Revision
News Coverage
Gap Down
OraSure Technologies, Inc. stock logo
OraSure Technologies
0.0813.74$392.67 million642,547580,055
Nordic American Tankers Limited stock logo
Nordic American Tankers
0.0960.00$751.68 million2.51 million3.12 millionUpcoming Earnings
Tsakos Energy Navigation Limited stock logo
Tsakos Energy Navigation
0.092.97$511.70 million240,453385,335
Credit Suisse X-Links Gold Shares Covered Call ETN stock logo
Credit Suisse X-Links Gold Shares Covered Call ETN
0.10186.53$58.18 million4,1465,422News Coverage
InnSuites Hospitality Trust stock logo
InnSuites Hospitality Trust
0.1024.67$13.59 million4,57713,954Positive News
Cullinan Oncology, Inc. stock logo
Cullinan Oncology
0.107.21$346.37 million144,607201,642
Chemung Financial Co. stock logo
Chemung Financial
0.115.62$164.24 million15,65313,629Analyst Report
HMN Financial, Inc. stock logo
HMN Financial
0.129.69$81.38 million1,1982,896Positive News
Tootsie Roll Industries, Inc. stock logo
Tootsie Roll Industries
0.1334.33$2.64 billion138,673130,041Analyst Report
News Coverage
Mid-Southern Bancorp, Inc. stock logo
Mid-Southern Bancorp
0.1314.11$26.41 million3,3242,912Positive News
Superior Drilling Products, Inc. stock logo
Superior Drilling Products
0.1312.25$28.67 million25,84776,443Analyst Report
Magyar Bancorp, Inc. stock logo
Magyar Bancorp
0.138.15$67.03 million3,1284,070
Chunghwa Telecom Co., Ltd. stock logo
Chunghwa Telecom
0.1325.89$31.73 billion86,108118,921News Coverage
Vasta Platform Limited stock logo
Vasta Platform
0.1325.21$285.97 million6,35814,258
Espey Mfg. & Electronics
0.1415.17$50.79 million13,8367,972Analyst Report
Gap Down
Globus Maritime Limited stock logo
Globus Maritime
0.140.79$19.24 million38,33471,530Gap Up
POINT Biopharma Global Inc. stock logo
POINT Biopharma Global
0.1412.44$1.10 billion812,856632,802Analyst Revision
The Vita Coco Company, Inc. stock logo
Vita Coco
0.14111.28$1.38 billion332,876316,614
Ohio Valley Banc Corp. stock logo
Ohio Valley Banc
0.148.91$117.11 million3,6524,170Analyst Report
News Coverage
Blue Foundry Bancorp stock logo
Blue Foundry Bancorp
0.15456.23$241.13 million138,527123,975Analyst Report
News Coverage
First Trust California Municipal High Income ETF stock logo
First Trust California Municipal High Income ETF
0.15128.84$119.95 million20,42914,774Positive News
Gravity Co., Ltd. stock logo
0.155.25$404.84 million7,34022,057Analyst Downgrade
Artesian Resources Co. stock logo
Artesian Resources
0.1630.45$523.55 million18,41939,717Analyst Report
Positive News
Hormel Foods Co. stock logo
Hormel Foods
0.1721.94$21.46 billion1.91 million1.97 millionAnalyst Report
Positive News
International General Insurance Holdings Ltd. stock logo
International General Insurance
0.174.75$388.94 million63,84246,100Short Interest ↑
The Duckhorn Portfolio, Inc. stock logo
Duckhorn Portfolio
0.1728.51$1.61 billion955,642500,707
TD Holdings, Inc. stock logo
0.175.55$86.71 million106,022392,151
Columbia Financial, Inc. stock logo
Columbia Financial
0.1919.65$1.66 billion134,514201,088
Utah Medical Products, Inc. stock logo
Utah Medical Products
0.1919.90$340.20 million3,0758,665Analyst Report
News Coverage
Biogen Inc. stock logo
0.1914.18$44.21 billion616,593981,132Analyst Report
The J. M. Smucker Company stock logo
J. M. Smucker
0.2122.87$16.20 billion936,318896,556Analyst Report
Old Point Financial Co. stock logo
Old Point Financial
0.218.17$82.43 million3,9934,197Dividend Announcement
News Coverage
Frontline plc stock logo
0.216.74$3.23 billion3.15 million3.57 millionUpcoming Earnings
Analyst Report
BioNTech SE stock logo
0.214.03$25.52 billion604,446686,843Analyst Upgrade
Virtu Financial, Inc. stock logo
Virtu Financial
0.219.18$2.99 billion611,3471.30 millionAnalyst Report
Global Self Storage, Inc. stock logo
Global Self Storage
0.2120.36$56.70 million5,75325,849
Autohome Inc. stock logo
0.2213.75$3.80 billion865,402588,380
Nathan's Famous, Inc. stock logo
Nathan's Famous
0.2215.40$283.40 million23,1136,121Analyst Report
High Trading Volume
Euronav NV stock logo
0.227.74$3.26 billion1.19 million2.02 millionAnalyst Report
Options Volume
BayFirst Financial Corp. stock logo
BayFirst Financial
0.22178.13$58.50 million5,6302,704Gap Down
High Trading Volume
Lancaster Colony Co. stock logo
Lancaster Colony
0.2243.79$5.76 billion138,341150,988Analyst Report
Positive News
First Capital, Inc. stock logo
First Capital
0.226.17$81.46 million1,0074,793Analyst Report
United Bancorp, Inc. stock logo
United Bancorp
0.237.72$69.89 million1,6374,522Gap Up
Happiness Development Group Limited stock logo
Happiness Development Group
0.236.15$20.52 million6,83514,340Gap Down
Regeneron Pharmaceuticals, Inc. stock logo
Regeneron Pharmaceuticals
0.2320.31$81.72 billion501,269600,803Analyst Report
Employers Holdings, Inc. stock logo
0.2413.80$1.01 billion113,614135,477Analyst Report
Sterling Check Corp. stock logo
Sterling Check
0.2488.07$1.21 billion148,382153,336
iHuman Inc. stock logo
0.2412.53$201.42 million11,09628,446Gap Up
Greene County Bancorp, Inc. stock logo
Greene County Bancorp
0.2511.50$359.50 million17,30421,982Analyst Upgrade
News Coverage
Coterra Energy Inc. stock logo
Coterra Energy
0.254.86$19.28 billion11.13 million8.50 millionAnalyst Report
Short Interest ↓
FVCBankcorp, Inc. stock logo
0.259.65$166.38 million20,22956,483
Peoples Financial Services Corp. stock logo
Peoples Financial Services
0.257.90$282.43 million16,61610,005Analyst Upgrade
Insider Buying
News Coverage
Perma-Pipe International Holdings, Inc. stock logo
Perma-Pipe International
0.2514.25$82.08 million4,2278,065
Kanzhun Limited stock logo
0.25341.20$6.39 billion2.37 million2.59 millionUpcoming Earnings
Third Coast Bancshares, Inc. stock logo
Third Coast Bancshares
0.269.82$218.64 million98,41833,977High Trading Volume
FinWise Bancorp stock logo
FinWise Bancorp
0.265.35$100.12 million9,62513,227Short Interest ↓
General Mills, Inc. stock logo
General Mills
0.2719.11$52.52 billion3.39 million3.23 millionAnalyst Report
Insider Selling
Short Interest ↓
ESSA Bancorp, Inc. stock logo
ESSA Bancorp
0.276.24$135.75 million30,00313,217Analyst Report
Gap Up
High Trading Volume
FTI Consulting, Inc. stock logo
FTI Consulting
0.2828.58$6.07 billion303,508236,003Analyst Report
Analyst Revision
Positive News
C&F Financial Co. stock logo
C&F Financial
0.285.82$174.03 million12,6766,669Dividend Announcement
Analyst Report
News Coverage
Natural Resource Partners L.P. stock logo
Natural Resource Partners
0.283.71$636.05 million22,13725,380Ex-Dividend
Analyst Report
News Coverage
Spok Holdings, Inc. stock logo
0.288.20$263.54 million191,159212,165
Premier, Inc. stock logo
0.2817.32$3.18 billion613,595658,706Analyst Report
Arko Corp. stock logo
0.2815.81$893.90 million218,039208,938News Coverage
Bank First Co. stock logo
Bank First
0.2813.21$731.46 million19,48120,512
Jewett-Cameron Trading Company Ltd. stock logo
Jewett-Cameron Trading
0.2866.72$16.35 million1,6233,955
Citizens Financial Services, Inc. stock logo
Citizens Financial Services
0.2810.81$315.93 million10,70615,226Short Interest ↑
Positive News
National HealthCare Co. stock logo
National HealthCare
0.2948.75$911.23 million43,39870,603Analyst Report
QuidelOrtho Co. stock logo
0.2947.79$5.80 billion328,887448,969Analyst Report
Oak Valley Bancorp stock logo
Oak Valley Bancorp
0.296.48$194.33 million98,75525,607Analyst Report
High Trading Volume
Equity Commonwealth stock logo
Equity Commonwealth
0.3045.98$2.32 billion1.18 million1.17 millionNews Coverage
Trading Halted
USCB Financial Holdings, Inc. stock logo
USCB Financial
0.309.35$192.67 million21,33528,161Gap Down
Grupo Simec, S.A.B. de C.V. stock logo
Grupo Simec
0.3014.42$4.82 billion1121,674Upcoming Earnings
Analyst Report
Steel Connect, Inc. stock logo
Steel Connect
0.301.50$50.18 million48,25481,873
The Clorox Company stock logo
0.30286.40$20.53 billion896,9191.24 millionAnalyst Report
Blue Ridge Bankshares, Inc. stock logo
Blue Ridge Bankshares
0.3013.65$162.88 million51,04229,557
MINISO Group Holding Limited stock logo
0.3132.00$5.05 billion1.39 million1.48 millionNews Coverage
Landmark Bancorp, Inc. stock logo
Landmark Bancorp
0.3110.64$107.01 million1,1443,909Analyst Report
Short Interest ↓
The Hershey Company stock logo
0.3132.38$54.54 billion1.01 million1.02 millionAnalyst Report
Insider Selling
FNCB Bancorp, Inc. stock logo
FNCB Bancorp
0.316.05$113.16 million30,54920,637Positive News

What Are Low Beta Stocks

Many retail investors assume that you can’t predict the stock market. And since you can’t predict it, they assume that investing in stocks carries a certain amount of risk. Well, as it turns out, there is a way to assess the risk of a particular security: it’s called beta. Low beta stocks are those securities that carry the lowest amount of risk.

How to Use Low Beta Stocks to Minimize Risk and Increase Returns

Beta is essentially a measure of a stock’s volatility. Risk level is one of the most important stats to analyze in terms of investing in stocks. A comparison of a stock’s risk factor to your own level of risk tolerance will help you know whether to buy, sell, or avoid a certain security. Beta is the number that will help you understand a stock’s level of risk and make those decisions.

What Is the Beta of a Stock?

In the simplest terms, beta is a tool that compares how volatile a stock is in comparison to the overall market. The stock market is the “control” and has a definitive benchmark beta of 1.0, while each individual security is the “variable,” with a beta that varies in terms of how much the stock moves around.

A stock that is more volatile than the market has a beta of more than 1.0, while a stock that is less volatile than the market has a beta of less than 1.0. If you’re a short-term trader riding the market waves and looking at stock market gainers, stock beta can let you know which securities might be the riskiest—then you can decide whether or not to get involved.

As you can see from this explanation, risky stocks are not the only ones that carry risk. Every one of the individual stocks can be viewed as a risky stock to some degree, even if the degree is negligible. Even in bull markets, when it seems like the sky’s the limit forever, it’s impossible for a stock to mirror the benchmark.

How to Calculate Beta

The beta of a stock is calculated using regression analysis. In short, regression analysis is all about comparing one stable variable with other changing variables. The formula for calculating a stock’s beta is simple in theory—beta is found by dividing covariance by variance.

Covariance represents how similar or dissimilar two numbers are in their movements—in this case, a stock is being compared to the market. Positive numbers indicate that their movement is similar. Negative numbers indicate that their movements are different.

Variance represents how much the “control” variable bounces around in comparison to its mean—its normal state. To keep it short and sweet, a stock’s beta is calculated with the intention of assessing how similar or divergent a stock’s movement is in comparison to the market—and thereby determining its volatility. Beta, in turn, can be worked into a complex equation to create a Capital Asset Pricing Model (CAPM). This equation helps calculate the expected return of an asset, using its risk-free rate as a starting point (a hypothetical rate of return involving no risk).

Beyond beta, other formulas, such as the Sharpe Ratio—which uses standard deviation—can help investors determine how much additional yield they’ll get for every increase per unit of risk. Then there is tracking error, which helps investors understand how much performance has deviated from the intended benchmark.

As you can see, beta is the gateway stat for an in-depth, computational way of growing equity through leveraging statistical opportunities in the stock market. 

Low Beta Strategy

Low Beta Strategy focuses on investing in securities that have a low beta. These are stocks issued by companies in a sector like consumer goods, food, and utilities. This type of asset tends to avoid wild fluctuations because its line of business is both necessary and consistent. For example, utility companies exert a relative monopoly over their local region and face little competition in their sector.

Low Beta stocks are safer in terms of price when the market is down—they match the market, and don’t wildly plummet while the market is coasting. However, when the market is up, the same logic applies: these stocks gain less than some of their more volatile counterparts.

Some investment strategies actually involving investing in both low and high beta stocks simultaneously. Stocks with a higher beta—which can experience greater price fluctuations—can present opportunities for big gains through short-term trading of these volatility stocks. To offset potential losses, the investor will also buy into stocks with a lower beta and hold onto them for longer periods of time. This statistical arbitrage strategy is referred to as the bet against beta.

How to Reduce Risk in Your Portfolio

Unfortunately, beta is not a catchall indicator that can prevent losing your earnings to risky investments. While beta is a mathematical measure of how volatile a stock is in comparison to the market, it says nothing about other factors, like how a company operates, its debt, or current events that can affect its operations—such as its potential in regard to future earnings.

For example, a company in a stable industry like utilities can be poorly run, on the brink of bankruptcy, and facing a cataclysmic shutdown due to a recent energy-related event—but because it’s historically moved in close tandem with the overall market, it’s beta is low. Doesn’t sound like a good investment, does it?

One way to reduce risk in your portfolio is to diversify your investments. In terms of stocks, this can mean diversifying your portfolio through a range of companies and industries. However, if you want to truly minimize risk, the majority of your portfolio should be invested in stable, established, non-speculative securities, and preferably ones that pay good dividends or offer opportunities for growth.

One of the easiest ways to avoid risk is to invest in mutual funds or ETFs. This type of fund pools money from a number of investors. With a larger amount of money to play with, mutual fund managers can spread it out over a broader range of securities than each individual investor would be able to buy on their own. You can also diversify risk by investing in different types of asset classes. Between stocks, bonds, commodities, real estate, and business ownership, there are a number of vehicles for producing cash flow. A capital asset like a paid-off rental property can even produce free cash flow, unencumbered by expenses (this is every investor’s golden egg).

If your money is diversified, when one of your investments takes a hit, you won’t have to lose all your eggs—you’ve placed them in different baskets. While much ink has been spilled about which type of asset can consistently outperform the others in terms of growth, everyone can agree that at different times one asset outperforms the others; they all carry a degree of historical volatility (even real estate). 

If you do want to pick out which stock comprises your portfolio, another strategy for reducing risk is to invest in established, stable companies—but these companies are stable beyond their beta score. Large blue-chip companies, like those you’ll find in Warren Buffet’s portfolio, have been around for decades. They are well run, well-financed, and have low amounts of debt. Beta says nothing about the degree of competence with which a company is run, although competently-run, long-standing companies usually do have a lower beta score.

Even if you’re trying to avoid too much risk, most financiers would agree that it’s okay to take a small percentage of your portfolio (financial experts such as Benjamin Graham have suggested no more than 5%) and look at cheap stocks to buy. These stocks might be riskier, but they can also provide good returns if they work out. If they don’t, your losses will be marginal.

Is It Smart to Invest in Low Beta Stocks?

While beta is used to analyze risk, it does have some shortcomings. As mentioned, beta is a comparative statistic that says nothing about how a company is run. It’s been described by analysts as a sort of rearview mirror, reflecting what’s behind, but not necessarily what’s ahead (which, by contrast, is very impacted by the degree of managerial competence and current events).

That said, beta can be a good tool for short-game investors looking to minimize risk. For long-term investors, it’s not necessarily that useful.

Moreover, beta is a number that says nothing about a stock’s price movement in terms of whether it’s going up or down. All beta tells you is a stock’s volatility relative to the market. This is especially problematic in light of the fact that investors, especially short-term traders, make their moves based on stock prices. However, in conjunction with other stats that give a more complete picture of a stock and its performance, beta can be a useful tool for assessing a security’s level of risk—for short term investors. Long-term investors will want to get a more complete picture of a company, how it’s run, and its level of debt before making an investment.

Investors should not just look at a stock’s beta, but also examine their own level of risk tolerance. Younger investors building a retirement portfolio can afford to take on more risks. After all, they have decades of investment ahead of them. Older investors nearing retirement want to avoid risk and do what they can to stabilize their portfolio as much as possible since it will become a source of income.

There are many strategies for investing in stocks, and they all depend on the investor's preferred mode of gain. A dividend investing strategy can turn rivulets of pennies into a mighty dividend stream, which is great for investors who want passive income. Day trading is great for investors who are skilled enough to leverage swings in the most volatile stocks at the drop of a hat. Other investors might find themselves somewhere between the long game and the short game, figuring out the best growth stocks to scoop up and sell at a profit weeks or months later.

Institutional investors may make a beta calculation as part of their equity and growth strategy, but it’s not the only tool they leverage for assessing how to respond to systematic risk. They do an in-depth micro and macro analysis of stats like market capitalization and general market volatility. Investors also perform fundamental and financial analysis of a company to consider future growth and dividend yield.

Low Beta Stocks

Beta tells you how risky a stock is by comparing its activity to that of the market. It’s important to combine financial signifiers like beta and even professional analyst ratings with fundamental analysis of a company. Alternatively, you can turn over investment decisions to a money manager.

Assessing the balance between risk and reward as it relates to financial gain is the bread and butter of short-term trading. But if short-term trading is not for you, you may consider other strategies such as searching for dividend-paying stocks, the snowballing equity of which can be rolled back into more dividend stocks. Retail investors can also piggyback invest by mimicking the portfolio of established investors with a track record of success. These strategies can be a much easier way for the average investor to increase their stock market earnings than attempting to leverage stock market beta. However, if you are looking to leverage short positions through day trading or similarly short-term asset growth, beta can be a useful tool for determining the risk of a particular security.

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