negative beta

Definition

The volatility measurement of a stock which reduces the volatility of a portfolio once that stock has been added. The beta coefficient of a stock or portfolio is a comparison of its risk to that of the stock market, stocks which are added that reduce the risk can be said to have a negative beta.

Use negative beta in a sentence

You may want to try and figure out a way to remove any negative beta from your portfolio if you can.

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They wanted to diversify their portfolio, so they added some securities with a negative beta to reduce the risk in the entire portfolio.

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The wolves of Wall Street worked tirelessly to determine the negative beta of a certain valuable stock that they were looking to acquire.

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negative authorization negative butterfly