Negative Beta Stocks
through Jan 20, 2023
A stock with a negative BETA (BETA < 0) implies an inverse relationship between the stock and the stock market. This is highly unlikely for the common stock of profitable companies.
Negative BETA stocks are an anomaly, which is why they say "A Rising Tide Lifts All Boats."
When we find a persistent negative BETA stock, it may provide an opportunity to hedge the stock market.
Negative BETA stocks are an anomaly, which is why they say "A Rising Tide Lifts All Boats."
When we find a persistent negative BETA stock, it may provide an opportunity to hedge the stock market.
List of stocks with negative BETA
We list below all common stocks with negative BETA values that we found recently. We include a few exchange traded funds (ETFs) that we analyze with those common stocks. There are usually very few negative BETA common stocks.
BRK.B Berkshire Hathaway Inc. -0.205
CPK Chesapeake Utilities Corp -0.097
CYTK Cytokinetics Inc -0.047
HUSA Houston American Energy Corp -0.055
MKUL Molekule Group Inc -0.401
SQQQ ProShares UltraPro Short QQQ -3x Shares -2.977
TBIO Telesis Bio Inc -0.465
TZA Direxion Daily Small Cap Bear 3X Shares -2.382
UHAL U-Haul Holding Company -0.955
UUP Invesco DB US Dollar Index Bullish Fund -0.143
UVXY ProShares Ultra VIX Short-Term Futures ETF 2x Shares -2.326
VERU Veru Inc -0.610
VIXY ProShares VIX Short-Term Futures ETF -1.577
(over the past year vs. $SPY, or the S&P 500 Index ETF).
CPK Chesapeake Utilities Corp -0.097
CYTK Cytokinetics Inc -0.047
HUSA Houston American Energy Corp -0.055
MKUL Molekule Group Inc -0.401
SQQQ ProShares UltraPro Short QQQ -3x Shares -2.977
TBIO Telesis Bio Inc -0.465
TZA Direxion Daily Small Cap Bear 3X Shares -2.382
UHAL U-Haul Holding Company -0.955
UUP Invesco DB US Dollar Index Bullish Fund -0.143
UVXY ProShares Ultra VIX Short-Term Futures ETF 2x Shares -2.326
VERU Veru Inc -0.610
VIXY ProShares VIX Short-Term Futures ETF -1.577
(over the past year vs. $SPY, or the S&P 500 Index ETF).
What stock BETA means in the stock market
BETA is the degree that a stock moves with the stock market. BETA is the degree of correlation, and the systematic risk of a stock. BETA is calculated by the covariance of a stock (x) with an index (y) divided by the variance of the index: covariance x,y / variance y.
