Traders Laboratory - View Single Post - Do you ever consider the Beta of a Stock before you invest?
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Old 10-05-2006, 09:00 PM
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Re: Do you ever consider the Beta of a Stock before you invest?

Diversification and betas are very closely linked, if you buy a number of stocks. You can integrate different betas to give a different angle on the market.

One stock beta in itself has the potential to be more volatile, although there are stocks with a beta which will follow the market closely, some perform directly opposite to the market.

If you are a trader, you should really be looking at betas.

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