Depending on how much volatility you are willing to handle, you can get a good idea of what a stock’s volatility is by looking at a stock’s Beta. I get the Beta for the stocks I cover from TD WebBroker, but you can get it easily from Globe and Mail investing site. Take Fortis Inc’s Beta, in the above site do a quote lookup for FTS and you will get FTS Quote . Click on the Statistics tab and you will see 36 Month Beta, which on May 30 was 0.35.
For Fortis, Beta number is low. Most utilities are. A Beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility. A negative beta describes an investment that tends to increase in price when the general market price falls and vice versa.
However, the stock market has bull markets and bear markets. A stock might have a low Beta, but go down a lot in the bear market. With me, I know I have good stocks and generally do not worry about bear markets. That is because my good stocks will recover once the market does.
On my other blog I wrote yesterday about HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. Next, I will write about Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more on Wednesday, May 31, 2023 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.