High BETA stocks & Low BETA stocks
through June 10, 2022
There are fewer high BETA stocks and low BETA stocks than last week. The extremely strong and extremely weak correlations between stocks and the indices are weakening.
The BETA of a stock is the degree of correlation between that stock and a specific stock index. In our case, we use the $SPY, or the S&P 500 Index ETF to calculate annual BETA based on daily adjusted close prices.
A stock with a very high BETA exaggerates and amplifies the movements of stock index. A stock with a very low BETA moves very little relative to the overall market, and in some cases moves independently to the exchange. As an example, Kellogg stock moves with customer's preference for Tony the Tiger on their cereal box, and likely not due to economic conditions.
High BETA stocks may be more risky, as they act as a leveraged 'bet' on the overall stock market. Stocks with low BETA tend to be seen as safe and less volatile.
If the overall US equities markets move, high BETA stocks tend to move more, and low BETA stocks tend to move less, all other conditions being equal.
We see fewer high and low BETA stocks in the past few weeks. Not sure what this means, but it seems important
The BETA of a stock is the degree of correlation between that stock and a specific stock index. In our case, we use the $SPY, or the S&P 500 Index ETF to calculate annual BETA based on daily adjusted close prices.
A stock with a very high BETA exaggerates and amplifies the movements of stock index. A stock with a very low BETA moves very little relative to the overall market, and in some cases moves independently to the exchange. As an example, Kellogg stock moves with customer's preference for Tony the Tiger on their cereal box, and likely not due to economic conditions.
High BETA stocks may be more risky, as they act as a leveraged 'bet' on the overall stock market. Stocks with low BETA tend to be seen as safe and less volatile.
If the overall US equities markets move, high BETA stocks tend to move more, and low BETA stocks tend to move less, all other conditions being equal.
We see fewer high and low BETA stocks in the past few weeks. Not sure what this means, but it seems important
Positive Net Income & Positive Cash Flow from Operations
(market cap > $25M, traded every day the past year, positive BETA):
(market cap > $25M, traded every day the past year, positive BETA):
BETA >= 2.50:
1 SI Silvergate Capital Corp 3.339
2 COIN Coinbase Global Inc 2.719
3 APPS Digital Turbine Inc 2.704
4 SITM SiTime Corp 2.688
5 TTD Trade Desk Inc 2.571
6 LC LendingClub Corp 2.537
7 LEU Centrus Energy Corp 2.524
There were 10 last week.
BETA >= 0.20:
0 K Kellogg Co 0.021
1 TCFC Community Financial Corp 0.027
2 CVLY Codorus Valley Bancorp Inc. 0.037
3 AZPN Aspen Technology Inc 0.044
4 BRG Bluerock Residential Growth REIT Inc 0.046
5 TREC Trecora Resources 0.049
6 FNCB FNCB Bancorp Inc 0.049
7 FFNW First Financial Northwest Inc 0.050
8 HWBK Hawthorn Bancshares Inc 0.060
9 NEM Newmont Corp 0.066
10 MRBK Meridian Corp 0.067
11 ISTR Investar Holding Corp 0.067
12 ASRV Ameriserv Financial Inc 0.070
13 WMPN William Penn Bancorporation 0.073
14 GBTG Global Business Travel Group Inc 0.079
15 SBFG SB Financial Group Inc 0.089
16 WBT Welbilt Inc 0.093
17 CR Crane Holdings Co. 0.098
18 WVVI Willamette Valley Vineyard Inc. 0.128
19 FCCO First Community Corp. 0.129
20 LSAK Lesaka Technologies Inc 0.131
21 PNM PNM Resources Inc 0.132
22 HRL Hormel Foods Corp. 0.133
23 UTL Unitil Corp. 0.133
24 NWFL Norwood Financial Corp. 0.138
25 CALB California Bancorp 0.157
26 SEB Seaboard Corp. 0.162
27 UBCP United Bancorp Inc. (Martins Ferry OH) 0.166
28 ATLO Ames National Corp. 0.166
29 KMB Kimberly-Clark Corp. 0.167
30 CBAN Colony Bankcorp Inc. 0.170
31 TSBK Timberland Bancorp Inc. 0.170
32 LMT Lockheed Martin Corp. 0.170
33 EBMT Eagle Bancorp Montana Inc 0.176
34 SASI Sigma Labs Inc 0.178
35 ATVI Activision Blizzard Inc 0.181
36 CPB Campbell Soup Co. 0.188
37 CRWS Crown Crafts Inc. 0.190
38 CLX Clorox Co. 0.198
39 CMS CMS Energy Corporation 0.200
There were 41 last week.
Negative Net Income
(market cap > $25M, traded every day the past year, positive BETA):
(market cap > $25M, traded every day the past year, positive BETA):
BETA >= 2.50:
1 AFRM Affirm Holdings Inc 3.47
2 PRTY Party City Holdco Inc 3.45
4 MARA MARATHON DIGITAL HOLDINGS INC. 3.28
5 FTCH Farfetch Ltd 3.05
6 RIOT Riot Blockchain Inc 3.01
7 AMRS Amyris Inc 3.00
8 ACCD Accolade Inc 2.97
9 BTBT Bit Digital Inc 2.96
10 CLSK Cleanspark Inc 2.93
11 MSTR Microstrategy Inc. 2.90
12 REAL Therealreal Inc 2.88
13 BKKT Bakkt Holdings Inc 2.86
14 ASAN Asana Inc 2.83
15 CVNA Carvana Co. 2.79
16 EOSE Eos Energy Enterprises Inc 2.70
17 DOCN DigitalOcean Holdings Inc 2.69
18 AVCT American Virtual Cloud Technologies Inc 2.69
19 ANY Sphere 3D Corp 2.68
20 SQ Block Inc 2.68
21 FUBO fuboTV Inc. /FL 2.66
22 BILL Bill.com Holdings Inc 2.63
23 IONQ IonQ Inc 2.62
24 NET Cloudflare Inc 2.60
25 ARCT Arcturus Therapeutics Holdings Inc 2.59
26 SPT Sprout Social Inc 2.59
27 U Unity Software Inc 2.58
28 VERI Veritone Inc 2.56
29 ZY Zymergen Inc 2.56
30 SEER Seer Inc 2.55
31 SKLZ Skillz Inc 2.54
32 GLBE Global E Online Ltd 2.53
33 PACB Pacific Biosciences of California Inc 2.52
34 PRCH Porch Group Inc 2.51
35 DNMR Danimer Scientific Inc 2.51
36 OPEN Opendoor Technologies Inc 2.51
37 VRM Vroom Inc. 2.50
38 ATOM Atomera Inc 2.50
There were 39 last week.
BETA >= 0.20:
0 MIC Macquarie Infrastructure Holdings LLC 0.04
1 ICCC Immucell Corp. 0.05
2 RNGR Ranger Energy Services Inc 0.06
3 IAG Iamgold Corp. 0.08
4 SRLP Sprague Resources LP 0.13
5 RMCF Rocky Mountain Chocolate Factory Inc 0.14
6 SREV ServiceSource International Inc 0.14
7 REFR Research Frontiers Inc. 0.14
8 SLV iShares Silver Trust 0.15
9 NYMX Nymox Pharmaceutical Corp 0.16
10 VG Vonage Holdings Corp 0.18
11 TARO Taro Pharmaceutical Industries 0.19
12 SPOK Spok Holdings Inc 0.20
There were 12 last week.
ETF:
3 TNA Direxion Daily Small Cap Bull 3X Shares 3.34
Stocks with very low, positive BETA do not move with changes in the S&P 500. They act independently of the overall market movements. Some are consumer staples, small banks, or utilities that have not been moving very much (and demand seems impervious to economic cycles). These may be considered safer in a downward moving market.
Others are moving by their own force (e.g., R&D, or politically driven), like Pfizer $PFE.
Others are moving by their own force (e.g., R&D, or politically driven), like Pfizer $PFE.