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Beta of stocks and Strategy selection
Beta of stocks and Strategy selection
As we enter September, there is quite a bit of uncertainty in the global scene. An attack
on Syria seems all but given at this point, and there is a looming battle in Congress over
the debt ceiling and Obamacare. All of this seems to indicate a volatile mo nth in the
markets.
Given these conditions, it helps to review how we choose stocks, and then more
importantly how we choose individual strategies for such an environment. An important
consideration during these times is Beta of a stock.
Beta is defined as the correlation of all stocks to the S&P 500 Index (SPX). A calculation is
made based on the past 12 or 24 months or any other length of time, and the price
movement of a stock is plotted against a $1 movement in the SPX, and a correlation is
calculated. Stocks that have a Beta of more than 1 are said to be well-correlated or
strongly correlated. Stocks that have a Beta of 0.5 or less are said to be weakly
correlated..
The following video explores the concept of Beta, and the video also discusses the
general trading environment we can expect to see in September. And most importantly,
what strategies would we choose and what are the considerations for such a market
environment..
Your comments are most welcome..
OPTIONTIGER PROPRIETARY SYSTEMS
OptionTiger has created high-end intellectual property products that give an “edge” on every Options
trade. These are complete trading systems designed to produce returns on every trade, and come
complete with all adjustment techniques and risk management features.
CONDORMAX - Getting a positive return from every Iron Condor
http://www.optiontiger.com/optionedge-trading-system/
INCOMEMAX SPREADS AND STRADDLES SYSTEMS - Highly effective strategies to build small accounts
http://www.optiontiger.com/incomemax-strategies/
EARNINGSMAX - Playbook of trades for every Earnings season
http://www.optiontiger.com/earningsmax/
SWINGTRADEMAX - Swing trades from 3 days to 3 weeks capable of producing 20% to 80%
http://www.optiontiger.com/swingtrademax/
DAYTRADEMAX - Powerful Intra-day trading system using Options
http://www.optiontiger.com/daytrademax/
OPTIONTIGER COURSEWARE - 46 Courses from Beginner to Mastery levels in Options
http://www.optiontiger.com/intro-options/
FREE EBOOK - Top 7 Options Trading Mistakes
http://www.optiontiger.com/options-trading-mistakes-2/
To attend a Free Webinar and learn more about all OptionTiger systems, please register for the next Live
webinar here https://attendee.gotowebinar.com/register/4051832647030437633

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Beta of stocks_and_strategy_selection

  • 1.
  • 2. Beta of stocks and Strategy selection Beta of stocks and Strategy selection As we enter September, there is quite a bit of uncertainty in the global scene. An attack on Syria seems all but given at this point, and there is a looming battle in Congress over the debt ceiling and Obamacare. All of this seems to indicate a volatile mo nth in the markets. Given these conditions, it helps to review how we choose stocks, and then more importantly how we choose individual strategies for such an environment. An important consideration during these times is Beta of a stock. Beta is defined as the correlation of all stocks to the S&P 500 Index (SPX). A calculation is made based on the past 12 or 24 months or any other length of time, and the price movement of a stock is plotted against a $1 movement in the SPX, and a correlation is calculated. Stocks that have a Beta of more than 1 are said to be well-correlated or strongly correlated. Stocks that have a Beta of 0.5 or less are said to be weakly correlated.. The following video explores the concept of Beta, and the video also discusses the general trading environment we can expect to see in September. And most importantly, what strategies would we choose and what are the considerations for such a market environment.. Your comments are most welcome..
  • 3. OPTIONTIGER PROPRIETARY SYSTEMS OptionTiger has created high-end intellectual property products that give an “edge” on every Options trade. These are complete trading systems designed to produce returns on every trade, and come complete with all adjustment techniques and risk management features. CONDORMAX - Getting a positive return from every Iron Condor http://www.optiontiger.com/optionedge-trading-system/ INCOMEMAX SPREADS AND STRADDLES SYSTEMS - Highly effective strategies to build small accounts http://www.optiontiger.com/incomemax-strategies/ EARNINGSMAX - Playbook of trades for every Earnings season http://www.optiontiger.com/earningsmax/ SWINGTRADEMAX - Swing trades from 3 days to 3 weeks capable of producing 20% to 80% http://www.optiontiger.com/swingtrademax/ DAYTRADEMAX - Powerful Intra-day trading system using Options http://www.optiontiger.com/daytrademax/ OPTIONTIGER COURSEWARE - 46 Courses from Beginner to Mastery levels in Options http://www.optiontiger.com/intro-options/ FREE EBOOK - Top 7 Options Trading Mistakes http://www.optiontiger.com/options-trading-mistakes-2/ To attend a Free Webinar and learn more about all OptionTiger systems, please register for the next Live webinar here https://attendee.gotowebinar.com/register/4051832647030437633