What investments have inverse or very very very low beta compared to stock market?

Discussion in 'Trading' started by SoyUnGanador, Aug 18, 2022.

  1. I want something that very likely goes up, or at least falls very little, when the stock market falls. And that over time is profitable. Anyone got any ideas?

    Thank you.
     
  2. #metoo :D
     
  3. If anyone knew of an instrument like that, they'd rake in the millions very, very quietly - and never, ever disclose it.

    To be specific: you're asking for something that only has an upside (and is neutral at worst.) Does it make sense to you that anyone would offer a two-sided market in a resource like that? Or, to put it differently - would you offer the Golden Goose for sale if you owned it? Give that a bit of thought, and you'll have a fair idea of market mechanics in general.
     
    SunTrader and Overnight like this.
  4. deaddog

    deaddog

    Dividend growers. Of course they don't move as fast as the rest of the market during a bull run.
     
    nitrene likes this.
  5. That sorta puts the kibosh on "profitable". But then, people use all sorts of rubber rulers to define the term. :)
     
  6. deaddog

    deaddog

    Got any dividend growers that are not profitable?
     
  7. zghorner

    zghorner

    VIX has negative beta...could just roll futures taking profits at whatever level of your choosing.
     

  8. I see what you are saying. I was just hoping for an investment that had a negative beta and turned a profit, even if a VERY SMALL profit. Heck, maybe even a small loss would be fine if it had a negative enough beta.
     

  9. Hmmmmm, I think this is a veeeeeery good idea zghorner. I need to look at some modeling where I hold some VIX as a very small part of my portfolio. Thank you.
     
    zghorner likes this.
  10. I don't think many dividend growers have negative beta compared to the stock market generally, I bet the vast majority of them have a pretty strong positive beta (less than 1 obviously in the vast majority of cases, but still well above 0 I bet in most cases).
     
    #10     Aug 18, 2022