SHIP - Bet on These 4 Low-Beta Stocks to Navigate Market Uncertainty | Benzinga
Market volatility is likely to persist, with Federal Reserve officials projecting only a single rate cut this year despite the recent inflation report indicating easing price pressures. As a result, volatility and uncertainty may continue in the stock market, emphasizing the importance of assembling a portfolio consisting of low-beta stocks. These securities are expected to deliver strong returns while offering protection against unpredictable market conditions.
In this regard, stocks like The Vita Coco Company, Inc. (NASDAQ: COCO), Seanergy Maritime Holdings Corp. (NASDAQ: SHIP), Arcos Dorados Holdings Inc. (NYSE: ARCO) and Palomar Holdings Inc (NASDAQ: PLMR) are worth betting on.
Understanding Beta
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security's price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of ...