SLIDESHOW: 13 High Beta Stocks to Watch
Short term traders know that the way to make money is through volatility. Stocks that keep their cool through good times and bad are perfect for income investors looking for dividend yield but for the trader who is searching for market inefficiencies, they need hyperactive stocks.
The way to find those stocks is by looking at beta. Beta is a measure of volatility where a beta of one indicates that the stock will move roughly inline with the S&P 500. A beta of 2 means that the stock will move at twice the rate of the S&P 500.
Beta is a little more complicated than our simple explanation. Read this article to learn more but in general, remember that a stock with a beta of 2 is going to have a chart full of big moves and as a trader, you’re looking for quality names with volatility.
We conducted a search of stocks with a market cap. of at least $2 billion, volume of at least 500,000, a price of at least $5, and a beta at or above two.
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