The S&P 500 is a stock market index that consists of 500 large-cap stocks. The beta of a stock measures the volatility of the stock in relation to the overall market.
A beta of 1 means that the stock is as volatile as the market, while a beta of less than 1 means that the stock is less volatile than the market. Did you know that the highest beta stocks in the S&P 500 have an average beta of 2.33?
The following are the 10 highest beta stocks in the S&P 500, according to data from Yahoo Finance:
1.Tesla (TSLA) – Beta = 2.17
The electric car maker Tesla has a beta of 2.17, making it the highest beta stock in the S&P 500. Tesla is well-known for its volatile stock price, which can swing up or down by large amounts in a single day.
2.Netflix (NFLX) – Beta = 2.16
Netflix, the popular streaming service, has a beta of 2.16. Netflix is a high-growth company that investors tend to either love or hate. The stock can be very volatile as investors react to news about the company’s business prospects.
3.Apple (AAPL) – Beta = 1.96
Apple, the world’s largest company by market capitalization, has a beta of 1.
4.Amazon (AMZN) – Beta = 1.93
Amazon, the e-commerce giant, has a beta of 1.93. Amazon is a high-growth company that investors tend to either love or hate. The stock can be very volatile as investors react to news about the company’s business prospects.
5.Google (GOOG) – Beta = 1.92
Google, the world’s largest search engine, has a beta of 1.92. Google is a high-growth company that investors tend to either love or hate. The stock can be very volatile as investors react to news about the company’s business prospects.
6.Facebook (FB) – Beta = 1.91
Facebook, the world’s largest social network, has a beta of 1.91. Facebook is a high-growth company that investors tend to either love or hate. The stock can be very volatile as investors react to news about the company’s business prospects.
7.Microsoft (MSFT) – Beta = 1.87
Microsoft, the world’s largest software company, has a beta of 1.87. Microsoft is a large and stable company, but its stock can still be volatile as investors react to news about the company’s business prospects.
8.Alphabet (GOOGL) – Beta = 1.86
Alphabet, the parent company of Google, has a beta of 1.86. Alphabet is a high-growth company that investors tend to either love or hate. The stock can be very volatile as investors react to news about the company’s business prospects.
9.JD.com (JD) – Beta = 1.83
JD.com, the largest e-commerce company in China, has a beta of 1.83. JD.com is a high-growth company that investors tend to either love or hate. The stock can be very volatile as investors react to news about the company’s business prospects.
10.Nike (NKE) – Beta = 1.82
Nike, the world’s largest sporting goods company, has a beta of 1.82. Nike is a large and stable company, but its stock can still be volatile as investors react to news about the company’s business prospects.
As you can see, the highest beta stocks in the S&P 500 are all high-growth companies that tend to be loved or hated by investors. These stocks can be very volatile, so they may not be suitable for everyone. If you’re thinking of investing in any of these stocks, make sure you understand the risks involved before you buy.
5 Things you should never do when investing
Now that we’ve covered the stocks, let’s cover a few tips regarding investing strategies by highlighting some of the most common mistakes investors make.
1. Don’t put all your eggs in one basket
Investing in just one stock is very risky. If the stock price goes down, you could lose a lot of money. It’s important to diversify your portfolio by investing in different stocks, bonds, and other investments.
2. Don’t invest in a company you don’t understand
Before you invest in a company, make sure you understand how it makes money. Avoid investing in companies that are too complicated or that you don’t understand.
3. Don’t forget to diversify
Diversification is key to reducing risk. Don’t just invest in stocks, invest in different asset classes like bonds, real estate, and commodities.
4. Don’t blindly follow the herd
Just because everyone is investing in a certain stock doesn’t mean you should too. Do your own research and only invest in companies that you believe in.
5. Don’t forget to rebalance
Rebalancing is when you sell some of your investments that have increased in value and buy more of the investments that have gone down in value. This helps to keep your portfolio diversified and lowers your risk.
We hope you found this article helpful. Remember, these are just a few things to keep in mind if you’re thinking of investing in stocks. It’s important to do your own research and talk to a financial advisor before making any investment decisions.
