High Beta Index

Loading the player...

DEFINITION of 'High Beta Index'

An index composed of companies with high betas trading on the NYSE.

BREAKING DOWN 'High Beta Index'

Beta is a measure of a stock's volatility in relation to the market as a whole, and the high beta index takes account of those stocks considered to have higher volatilities.

RELATED TERMS
  1. Beta

    Beta is a measure of the volatility, or systematic risk, of a ...
  2. International Beta

    Better known as "global beta", international beta is a measure ...
  3. Unlevered Beta

    A type of metric that compares the risk of an unlevered company ...
  4. Smart Beta ETF

    Smart Beta ETF is a type of exchange-traded fund that uses alternative ...
  5. Smart Beta

    Smart beta defines a set of investment strategies that emphasize ...
  6. Zero-Beta Portfolio

    A portfolio constructed to have zero systematic risk or, in other ...
Related Articles
  1. Managing Wealth

    Beta: Gauging Price Fluctuations

    Learn how to properly use this measure that can help you meet your criteria for risk.
  2. Markets

    High Beta – Low Beta Stocks Define Volatility Trades

    We compare the Beta values obtained from financial sources. Also, how to compute Beta using Excel.
  3. Managing Wealth

    Beta: Know The Risk

    Beta says something about price risk, but how much does it say about fundamental risk factors? Find out here.
  4. Markets

    3 Cases When Beta Does Not Measure Volatility of Stocks

    Examine the theoretical and statistical relationship between beta and volatility to identify three factors that limit beta's explanatory value.
  5. Managing Wealth

    How To Calculate Beta Of A Private Company

    We explain two methods for calculating the beta of a private company.
  6. Managing Wealth

    What is a Security Market Line?

    The security market line graphs the systematic risk versus return of the whole market at a certain time, and shows all risky marketable securities.
  7. Managing Wealth

    How AQR Places Bets Against Beta

    Learn how the bet against beta strategy is used by a large hedge fund to profit from a pricing anomaly in the stock market caused by high stock prices.
  8. Managing Wealth

    Calculating Beta: Portfolio Math For The Average Investor

    Beta is a useful tool for calculating risk, but the formulas provided online aren't specific to you. Learn how to make your own.
  9. Financial Advisor

    How to Explain Smart Beta Strategies to Clients

    Smart beta funds continue to gain steam. Here's how to explain the benefits of these strategies to clients.
  10. Investing

    3 Reasons Against a Smart Beta Allocation in Your Portfolio

    Find out why smart beta strategies might not be the best bet, and discover 3 reasons why you should think twice before using them to allocate stocks.
RELATED FAQS
  1. How does beta measure a stock's market risk?

    Learn how beta is used to measure risk versus the stock market, and understand how it is calculated and used in the capital ... Read Answer >>
  2. Why should I register as a Limited Liability Company (LLC) if I am self-employed ...

    Understand the difference between a company's levered beta and unlevered beta. Learn how debt affects a company's levered ... Read Answer >>
  3. What are the differences between delta hedging and beta hedging?

    Learn about hedging strategies, how to delta and beta hedge a security and the difference between delta hedging and beta ... Read Answer >>
  4. How does my insurance company determine what premiums I have to pay for coverage?

    Learn about some of the quantitative finance measures that investors without a strong math background can use in analyzing ... Read Answer >>
  5. When is it better to use unlevered beta than levered beta?

    Understand what a security's unlevered beta and levered beta measure, and learn which one is more accurate in measuring a ... Read Answer >>
  6. What's the difference between alpha and beta?

    Learn about alpha and beta, two very important technical risk ratios that investors use to evaluate relative performance, ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center