I'm trying to learn to trade listed stocks. In my very brief experience with them, I've had a lot of difficulty with MMM and LOW. I have been having some success with CAT. MMM and LOW seem to go all over the place with little following of the indexes or a lot of lag or sometimes in the opposite direction. What other listed stocks do you have difficulty with? Which ones are more or less in line with the indexes?
Isn't the beta a measure of how a stock correlates with mkt? So a beta of 1 correlates with mkt while a beta of 2-twice as much. If I got this right, you should be looking at a beta of 0 which neither pos or neg correlates. am I correct?
SLB is another one.. but so far this week, when the market is up, they're up, when the market is down, they're up. so yups, i got burned shorting it lol.
relates to volatility in comparison to the overall market...if the stock has a beta of 2 and the market is up 1% then usually the stock should be up approximately 2%. I am sure that someone could expand on this more than myself. As a general rule, high beta = high volatility in relation to the market (I believe the SP500 is the basis). Daryn