List of Negative Beta U.S. Common Stocks: August 30, 2024

We list below all common stocks with negative BETA values for the past year vs. the S&P 500 Equity Index ETF $SPY. We recently added some exchange traded funds (ETF) to capture commodity, currency, volatility and international equity asset classes, and their BETA values. This is based on the adjusted closing price for the last 253 trading days. These stocks are unique in that they have a negative BETA value. These stocks are anomalies, most stocks have a positive BETA. 

There are very few stocks with a negative beta value. In the past three years since we have been tracking them, they make up from 1.5% to 5% of all data validated stocks. Today, we see more of them, and we include select ETFs.

They say "A rising tide lifts all boats." We expect all stocks to move with the market over time, just to a greater and lesser extent based on relative investor interest, valuations and historical BETA values. When a stock moves opposite to the overall market, it means there are strong forces at work on those individual stocks.

ETFs that track commodities, risk factors, currencies, or cryptocurrencies may commonly trade with a negative BETA, because their underlying factor typically moves in the opposite direction as stocks (think interest rates, or the cost of insurance on stocks).

Some investors believe this non-normal behavior provides a hedge against market movements, and look to hold some negative BETA stocks in their portfolio as a hedge.

We include a broad sample of ETFs on commodities, currencies, and financial instruments which identified more negative BETA securities. We sometimes remove them to reduce their influence on our Chicago Quantum Net Score model.
​

Negative BETA stocks are rare and indicate a stock trading anomaly. Here are the stocks with BETA values outside the data validation range. This means they cannot be chosen as the best, or worst, stocks to buy based on risk-return. They fall out of the analysis element set before portfolios are searched and scored.

Here are the stocks and ETFs we analyze with BETA values outside the data validation range. 

TICKER (alphabetical order), BETA, STOCK NAME
CBOE   -0.253 Cboe Global Markets Inc.                          
COR    -0.040 Cencora Inc.                                      
CPB    -0.134 Campbell Soup Co.                                 
CYBN   -0.247 Cybin Inc                                         
EJH    -1.153 E-Home Household Service Holdings Ltd             
ENSV   -0.375 Enservco Corp                                     
FEMY   -0.400 Femasys Inc                                       
GIS    -0.142 General Mills  Inc.                               
HUBC   -0.949 Hub Cyber Security Ltd                            
HUSA   -1.281 Houston American Energy Corp                      
INDO   -2.204 Indonesia Energy Corp Ltd                         
IRWD   -0.013 Ironwood Pharmaceuticals Inc                      
K      -0.233 Kellanova Co                                      
LIFW   -1.294 MSP Recovery Inc                                  
LYRA   -0.334 Lyra Therapeutics Inc                             
MCK    -0.156 Mckesson Corporation                              
MEGL   -0.091 Magic Empire Global Ltd                           
PRZO   -0.842 ParaZero Technologies Ltd                         
RCAT   -0.234 Red Cat Holdings Inc                              
SLNO   -0.347 Soleno Therapeutics Inc                           
SQQQ   -3.931 ProShares UltraPro Short QQQ -3x Shares           
SYRS   -0.108 Syros Pharmaceuticals Inc.                        
TPET   -1.644 Trio Petroleum Corp.                              
TZA    -3.713 Direxion Daily Small Cap Bear 3X Shares           
UUP    -0.152 Invesco DB US Dollar Index Bullish Fund           
VIRX   -0.073 Viracta Therapeutics Inc                          
ZVRA   -0.471 Zevra Therapeutics Inc                            

Learn more about our Chicago Quantum Net Score analysis

---

What stock BETA means in the stock market

• Describe stock beta
• Describe negative stock beta, how it happens and what it means.
• Provide a list of currently negative BETA stocks (it changes frequently).
• Provide negative beta stock examples.​

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.  BETA is the measure of the systematic risk, or degree to which a stock moved as a multiple of the overall stock market.  A negative BETA stock has a negative covariance with the underlying index.

We measure this movement over a year, against the S&P 500 Index ETF, or SPY.

A stock with a negative BETA moved in the opposite direction of the market. It implies an inverse relationship between that stock and the market over the past year. It has zigged, when the market has zagged. It rose when the market fell. This is an anomaly, as most stocks move with the market, hence the expression: "a rising tide lifts all boats."

A beta of one implies a stock generally moved with the market. The large equity index, the S&P 500, moves with the market with a beta of one. Surprisingly, Real Estate moves with the market, as well as Bitcoin.

A beta between zero and one means a stock moved less quickly, but still with the market. A common example are consumer packaged goods that sell products found in grocery stores.

A beta greater than one means a stock moved more aggressively, but aligned with the market. It is proportional, so a beta of 2 implies it moves twice as much as the market. We see beta values up to 3.50 in our model. Many of the highest beta stocks are growth stocks and new economy stocks.

Continue Reading: What is stock BETA?

Contact us to learn more. You may purchase a sample CQNS report for $5.00, or a recent, full CQNS report for $50.00.