This Stock Goes Up When the Market Goes Down

Beta is the measure of a stock's volatility. Stocks with high beta, over 1.0, means the stock is more volatile than the broader market. Stocks with low beta, below 1.0, means they are less volatile and have smaller price swings than the market.Then there are stocks with negative beta, which means they move in the opposite direction of the market. Right now, with the S&P 500 and Nasdaq Composite in negative territory, that's not a bad thing.Certainly, it's a short-term snapshot, and the markets will head north again, but to navigate the market downturns, a stock with negative beta is a good diversifier to lift your portfolio when most of it is down.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool