S&P 500   4,298.86
DOW   33,876.78
QQQ   354.50
3 EV Stocks You Need To Have On Your Watchlist
"Unknown laser company making HUGE profit from Russia-Ukraine War" (Ad)
Will NIO Partake In China's Economic Awakening?
BJ's Restaurants' Approaching Buy Point As Earnings Surge 150%
66,000% upside on tiny biotech? (Ad)
Cactus Opens The Cash Flow Wellhead With Flexsteel Acquisition 
Tax Software Specialist Vertex In Buy Zone After Base Breakout
Trade Smarter: Discover Hidden Opportunities w/ A.I. (Ad)
How to Choose a Brokerage Account or Online Broker
Will Plug Power’s Deal With Energy Vault Move The Needle? 
S&P 500   4,298.86
DOW   33,876.78
QQQ   354.50
3 EV Stocks You Need To Have On Your Watchlist
"Unknown laser company making HUGE profit from Russia-Ukraine War" (Ad)
Will NIO Partake In China's Economic Awakening?
BJ's Restaurants' Approaching Buy Point As Earnings Surge 150%
66,000% upside on tiny biotech? (Ad)
Cactus Opens The Cash Flow Wellhead With Flexsteel Acquisition 
Tax Software Specialist Vertex In Buy Zone After Base Breakout
Trade Smarter: Discover Hidden Opportunities w/ A.I. (Ad)
How to Choose a Brokerage Account or Online Broker
Will Plug Power’s Deal With Energy Vault Move The Needle? 
S&P 500   4,298.86
DOW   33,876.78
QQQ   354.50
3 EV Stocks You Need To Have On Your Watchlist
"Unknown laser company making HUGE profit from Russia-Ukraine War" (Ad)
Will NIO Partake In China's Economic Awakening?
BJ's Restaurants' Approaching Buy Point As Earnings Surge 150%
66,000% upside on tiny biotech? (Ad)
Cactus Opens The Cash Flow Wellhead With Flexsteel Acquisition 
Tax Software Specialist Vertex In Buy Zone After Base Breakout
Trade Smarter: Discover Hidden Opportunities w/ A.I. (Ad)
How to Choose a Brokerage Account or Online Broker
Will Plug Power’s Deal With Energy Vault Move The Needle? 
S&P 500   4,298.86
DOW   33,876.78
QQQ   354.50
3 EV Stocks You Need To Have On Your Watchlist
"Unknown laser company making HUGE profit from Russia-Ukraine War" (Ad)
Will NIO Partake In China's Economic Awakening?
BJ's Restaurants' Approaching Buy Point As Earnings Surge 150%
66,000% upside on tiny biotech? (Ad)
Cactus Opens The Cash Flow Wellhead With Flexsteel Acquisition 
Tax Software Specialist Vertex In Buy Zone After Base Breakout
Trade Smarter: Discover Hidden Opportunities w/ A.I. (Ad)
How to Choose a Brokerage Account or Online Broker
Will Plug Power’s Deal With Energy Vault Move The Needle? 

Low Beta Stocks

Beta is the a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Beta is considered one of the few data points that can be beneficial for practitioners of both fundamental analysis and technical analysis. This page lists stocks that have unusually low beta calculations, meaning there is little correlation between the price moves of these stocks and the S&P 500. Learn more about low beta stocks.

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CompanyCurrent PriceBetaPE RatioMarket CapVolumeAverage VolumeIndicator(s)
J.W. Mays, Inc. stock logo
J.W. Mays
0.01489.00$88.72 million14368Earnings Report
News Coverage
Frontier Investment Corp stock logo
Frontier Investment
0.0160.71$258.50 million77,95534,714High Trading Volume
Primavera Capital Acquisition Co. stock logo
Primavera Capital Acquisition
0.0115.49$274.66 million18,476103,184Gap Up
Lanvin Group Holdings Limited stock logo
Lanvin Group
0.0115.49$667.95 million18,476300,328
ST Energy Transition I
0.0130.85$316.69 million725,243175,285High Trading Volume
Citizens Holding stock logo
0.027.74$67.96 million4,3381,080Dividend Cut
High Trading Volume
ZTO Express (Cayman) Inc. stock logo
ZTO Express (Cayman)
0.0220.21$16.55 billion1.46 million3.14 millionAnalyst Downgrade
Oxbridge Acquisition Corp. stock logo
Oxbridge Acquisition
0.03158.29$45.78 million141298News Coverage
Palomar Holdings, Inc. stock logo
0.0327.47$1.48 billion99,497164,809Insider Selling
Analyst Revision
News Coverage
International Seaways, Inc. stock logo
International Seaways
0.033.20$1.78 billion535,341491,849News Coverage
Pathfinder Bancorp, Inc. stock logo
Pathfinder Bancorp
0.046.36$61.96 million3,5602,123Positive News
Black Spade Acquisition Co stock logo
Black Spade Acquisition
0.0441.32$218.22 million3,081199,429
0.05215.50$36.67 million02,534Positive News
Blue Whale Acquisition Corp I stock logo
Blue Whale Acquisition Corp I
0.0577.85$67.47 million52,918232,570Positive News
Fanhua Inc. stock logo
0.0514.51$409.35 million107,37287,380Gap Up
Siebert Financial Corp. stock logo
Siebert Financial
0.0636.43$87.11 million30,20156,191Analyst Report
Cullman Bancorp, Inc. stock logo
Cullman Bancorp
0.0620.11$78.70 million2,167834High Trading Volume
TDCX Inc. stock logo
0.0716.83$1.39 billion38,49447,829
Full Truck Alliance Co. Ltd. stock logo
Full Truck Alliance
0.0747.86$7.38 billion9.84 million5.03 million
Nordic American Tankers Limited stock logo
Nordic American Tankers
0.078.86$760.02 million2.53 million2.71 million
Procaps Group S.A. stock logo
Procaps Group
0.0813.28$488.52 million4,8369,378Positive News
InnSuites Hospitality Trust stock logo
InnSuites Hospitality Trust
0.0845.34$30.29 million33,61474,864Analyst Report
Positive News
Gap Down
OraSure Technologies, Inc. stock logo
OraSure Technologies
0.0913.49$396.35 million647,482724,776Analyst Downgrade
News Coverage
Tsakos Energy Navigation Limited stock logo
Tsakos Energy Navigation
0.091.47$509.27 million170,793250,818
Cullinan Oncology, Inc. stock logo
Cullinan Oncology
0.0910.75$511.69 million296,536360,187Insider Selling
Analyst Revision
News Coverage
Credit Suisse X-Links Gold Shares Covered Call ETN stock logo
Credit Suisse X-Links Gold Shares Covered Call ETN
0.10184.40$57.52 million1,4725,166Dividend Increase
Chemung Financial Co. stock logo
Chemung Financial
0.116.33$185.12 million8,01212,070
POINT Biopharma Global Inc. stock logo
POINT Biopharma Global
0.1212.19$1.07 billion703,934701,219
Superior Drilling Products
0.1214.63$35.09 million41,38474,240Analyst Report
HMN Financial, Inc. stock logo
HMN Financial
0.1210.16$84.14 million2,2691,657
Tootsie Roll Industries, Inc. stock logo
Tootsie Roll Industries
0.1335.19$2.74 billion109,347128,532Dividend Announcement
News Coverage
Mid-Southern Bancorp, Inc. stock logo
Mid-Southern Bancorp
0.1316.15$30.29 million1033,843
Chunghwa Telecom Co., Ltd. stock logo
Chunghwa Telecom
0.1325.78$31.52 billion31,42276,674Dividend Cut
Magyar Bancorp, Inc. stock logo
Magyar Bancorp
0.138.48$69.50 million1,7713,580
Globus Maritime Limited stock logo
Globus Maritime
0.141.24$18.83 million46,02453,195Earnings Report
Analyst Report
Blue Foundry Bancorp stock logo
Blue Foundry Bancorp
0.14512.76$273.94 million64,369105,535Positive News
Ohio Valley Banc Corp. stock logo
Ohio Valley Banc
0.149.08$118.22 million2,3082,515Analyst Report
News Coverage
First Trust California Municipal High Income ETF stock logo
First Trust California Municipal High Income ETF
0.15128.09$119.25 million6,15517,016Positive News
Gravity Co., Ltd. stock logo
0.165.34$404.77 million8,14214,637
The Vita Coco Company, Inc. stock logo
Vita Coco
0.16127.46$1.56 billion491,099828,791
International General Insurance Holdings Ltd. stock logo
International General Insurance
0.174.53$435.06 million15,47844,182
TD Holdings, Inc. stock logo
0.175.40$94.15 million106,51172,456
Artesian Resources Co. stock logo
Artesian Resources
0.1727.56$474.36 million18,84144,589Positive News
Hormel Foods Co. stock logo
Hormel Foods
0.1823.90$22.20 billion1.64 million2.66 million
Biogen Inc. stock logo
0.1814.34$44.71 billion1.23 million849,196News Coverage
The Duckhorn Portfolio, Inc. stock logo
Duckhorn Portfolio
0.1827.98$1.59 billion1.69 million625,063News Coverage
Gap Up
High Trading Volume
Columbia Financial, Inc. stock logo
Columbia Financial
0.1923.85$2.03 billion139,921170,100Positive News
AcelRx Pharmaceuticals, Inc. stock logo
AcelRx Pharmaceuticals
0.190.18$13.54 million315,467194,625Positive News
Gap Up
Frontline plc stock logo
0.195.06$3.17 billion3.70 million3.42 millionGap Up
Utah Medical Products, Inc. stock logo
Utah Medical Products
0.1920.62$360.23 million7,2356,547
Old Point Financial Co. stock logo
Old Point Financial
0.217.66$77.93 million2,4245,673Ex-Dividend
Analyst Downgrade
Euronav NV stock logo
0.217.80$3.23 billion1.91 million1.93 millionDividend Increase
Analyst Downgrade
Global Self Storage, Inc. stock logo
Global Self Storage
0.2120.24$56.94 million8,46315,233Positive News
Autohome Inc. stock logo
0.2113.67$3.78 billion651,345573,712Positive News
Virtu Financial, Inc. stock logo
Virtu Financial
0.229.28$3.04 billion798,403748,320
BioNTech SE stock logo
0.224.20$26.50 billion507,082702,470
Lancaster Colony Co. stock logo
Lancaster Colony
0.2241.67$5.49 billion102,701103,142Analyst Upgrade
Nathan's Famous, Inc. stock logo
Nathan's Famous
0.2216.97$335.31 million6,6276,293Dividend Announcement
First Capital, Inc. stock logo
First Capital
0.227.33$96.51 million3,4842,103Analyst Report
News Coverage
Positive News
Gap Down
BayFirst Financial Corp. stock logo
BayFirst Financial
0.23181.25$59.52 million106798Positive News
Happiness Development Group Limited stock logo
Happiness Development Group
0.235.79$19.32 million68614,340
Regeneron Pharmaceuticals, Inc. stock logo
Regeneron Pharmaceuticals
0.2320.29$82.01 billion536,615486,066Analyst Report
Kanzhun Limited stock logo
0.24255.00$5.60 billion6.14 million3.34 million
Employers Holdings, Inc. stock logo
0.2414.26$1.05 billion109,531149,717
United Bancorp, Inc. stock logo
United Bancorp
0.247.58$69.38 million1,0763,699News Coverage
Peoples Financial Services Corp. stock logo
Peoples Financial Services
0.258.21$300.33 million3,9779,086Analyst Upgrade
News Coverage
Gap Down
Sterling Check Corp. stock logo
Sterling Check
0.2584.43$1.14 billion666,896404,429
iHuman Inc. stock logo
0.259.63$148.39 million10,28316,634News Coverage
FVCBankcorp, Inc. stock logo
0.2510.72$185.02 million50,95526,945News Coverage
Negative News
Greene County Bancorp, Inc. stock logo
Greene County Bancorp
0.2516.98$530.56 million20,00314,641Insider Selling
Perma-Pipe International Holdings, Inc. stock logo
Perma-Pipe International
0.2514.65$83.24 million5253,454Upcoming Earnings
Positive News
FinWise Bancorp stock logo
FinWise Bancorp
0.256.14$114.14 million22,70716,951Positive News
Gap Up
Coterra Energy Inc. stock logo
Coterra Energy
0.264.69$18.60 billion5.43 million7.42 millionPositive News
General Mills, Inc. stock logo
General Mills
0.2717.77$48.54 billion2.71 million3.15 million
C&F Financial Co. stock logo
C&F Financial
0.276.50$196.83 million6,10810,247News Coverage
ESSA Bancorp, Inc. stock logo
ESSA Bancorp
0.277.84$170.39 million25,23119,871
Bank First Co. stock logo
Bank First
0.2816.26$912.38 million13,87015,409
FTI Consulting, Inc. stock logo
FTI Consulting
0.2830.58$6.50 billion172,337228,951Positive News
Third Coast Bancshares, Inc. stock logo
Third Coast Bancshares
0.2810.44$234.94 million44,82836,990Positive News
Jewett-Cameron Trading Company Ltd. stock logo
Jewett-Cameron Trading
0.2866.72$16.34 million1,0461,593Positive News
Spok Holdings, Inc. stock logo
0.287.94$255.95 million86,016208,859Positive News
QuidelOrtho Co. stock logo
0.2946.56$5.64 billion255,296282,062Positive News
Natural Resource Partners L.P. stock logo
Natural Resource Partners
0.293.56$605.96 million10,31918,379Positive News
Premier, Inc. stock logo
0.2916.93$3.09 billion468,985881,450Positive News
Arko Corp. stock logo
0.2916.98$967.25 million148,537276,695
Citizens Financial Services, Inc. stock logo
Citizens Financial Services
0.2912.53$363.86 million8,5328,191News Coverage
The Clorox Company stock logo
0.30270.09$19.46 billion928,856951,013
Equity Commonwealth stock logo
Equity Commonwealth
0.3045.25$2.29 billion531,239823,964Analyst Upgrade
USCB Financial Holdings, Inc. stock logo
USCB Financial
0.3010.19$210.35 million6,81218,381News Coverage
Positive News
Gap Down
Steel Connect, Inc. stock logo
Steel Connect
0.301.49$50.28 million32,87360,296Upcoming Earnings
Stock Split
Positive News
Gap Up
Blue Ridge Bankshares, Inc. stock logo
Blue Ridge Bankshares
0.3014.81$175.60 million13,56533,601
John B. Sanfilippo & Son, Inc. stock logo
John B. Sanfilippo & Son
0.3021.70$1.40 billion49,82559,162Positive News
Oak Valley Bancorp stock logo
Oak Valley Bancorp
0.306.88$202.40 million10,95230,472Positive News
Safety Insurance Group, Inc. stock logo
Safety Insurance Group
0.3042.91$1.14 billion56,51062,674Insider Buying
Ocuphire Pharma, Inc. stock logo
Ocuphire Pharma
0.314.53$82.95 million163,080386,162Positive News
SWK Holdings Co. stock logo
0.3115.50$223.11 million1,95015,836Positive News
ICC Holdings, Inc. stock logo
0.3134.02$51.68 million5,679705Gap Down
High Trading Volume
Landmark Bancorp, Inc. stock logo
Landmark Bancorp
0.3111.18$112.77 million6793,203Analyst Report
News Coverage
Stride, Inc. stock logo
0.3215.80$1.79 billion234,063283,737
The Hershey Company stock logo
0.3231.05$52.15 billion691,1231.08 million

What Are Low Beta Stocks

Many retail investors assume that you can’t predict the stock market. And since you can’t predict it, they assume that investing in stocks carries a certain amount of risk. Well, as it turns out, there is a way to assess the risk of a particular security: it’s called beta. Low beta stocks are those securities that carry the lowest amount of risk.

How to Use Low Beta Stocks to Minimize Risk and Increase Returns

Beta is essentially a measure of a stock’s volatility. Risk level is one of the most important stats to analyze in terms of investing in stocks. A comparison of a stock’s risk factor to your own level of risk tolerance will help you know whether to buy, sell, or avoid a certain security. Beta is the number that will help you understand a stock’s level of risk and make those decisions.

What Is the Beta of a Stock?

In the simplest terms, beta is a tool that compares how volatile a stock is in comparison to the overall market. The stock market is the “control” and has a definitive benchmark beta of 1.0, while each individual security is the “variable,” with a beta that varies in terms of how much the stock moves around.

A stock that is more volatile than the market has a beta of more than 1.0, while a stock that is less volatile than the market has a beta of less than 1.0. If you’re a short-term trader riding the market waves and looking at stock market gainers, stock beta can let you know which securities might be the riskiest—then you can decide whether or not to get involved.

As you can see from this explanation, risky stocks are not the only ones that carry risk. Every one of the individual stocks can be viewed as a risky stock to some degree, even if the degree is negligible. Even in bull markets, when it seems like the sky’s the limit forever, it’s impossible for a stock to mirror the benchmark.

How to Calculate Beta

The beta of a stock is calculated using regression analysis. In short, regression analysis is all about comparing one stable variable with other changing variables. The formula for calculating a stock’s beta is simple in theory—beta is found by dividing covariance by variance.

Covariance represents how similar or dissimilar two numbers are in their movements—in this case, a stock is being compared to the market. Positive numbers indicate that their movement is similar. Negative numbers indicate that their movements are different.

Variance represents how much the “control” variable bounces around in comparison to its mean—its normal state. To keep it short and sweet, a stock’s beta is calculated with the intention of assessing how similar or divergent a stock’s movement is in comparison to the market—and thereby determining its volatility. Beta, in turn, can be worked into a complex equation to create a Capital Asset Pricing Model (CAPM). This equation helps calculate the expected return of an asset, using its risk-free rate as a starting point (a hypothetical rate of return involving no risk).

Beyond beta, other formulas, such as the Sharpe Ratio—which uses standard deviation—can help investors determine how much additional yield they’ll get for every increase per unit of risk. Then there is tracking error, which helps investors understand how much performance has deviated from the intended benchmark.

As you can see, beta is the gateway stat for an in-depth, computational way of growing equity through leveraging statistical opportunities in the stock market. 

Low Beta Strategy

Low Beta Strategy focuses on investing in securities that have a low beta. These are stocks issued by companies in a sector like consumer goods, food, and utilities. This type of asset tends to avoid wild fluctuations because its line of business is both necessary and consistent. For example, utility companies exert a relative monopoly over their local region and face little competition in their sector.

Low Beta stocks are safer in terms of price when the market is down—they match the market, and don’t wildly plummet while the market is coasting. However, when the market is up, the same logic applies: these stocks gain less than some of their more volatile counterparts.

Some investment strategies actually involving investing in both low and high beta stocks simultaneously. Stocks with a higher beta—which can experience greater price fluctuations—can present opportunities for big gains through short-term trading of these volatility stocks. To offset potential losses, the investor will also buy into stocks with a lower beta and hold onto them for longer periods of time. This statistical arbitrage strategy is referred to as the bet against beta.

How to Reduce Risk in Your Portfolio

Unfortunately, beta is not a catchall indicator that can prevent losing your earnings to risky investments. While beta is a mathematical measure of how volatile a stock is in comparison to the market, it says nothing about other factors, like how a company operates, its debt, or current events that can affect its operations—such as its potential in regard to future earnings.

For example, a company in a stable industry like utilities can be poorly run, on the brink of bankruptcy, and facing a cataclysmic shutdown due to a recent energy-related event—but because it’s historically moved in close tandem with the overall market, it’s beta is low. Doesn’t sound like a good investment, does it?

One way to reduce risk in your portfolio is to diversify your investments. In terms of stocks, this can mean diversifying your portfolio through a range of companies and industries. However, if you want to truly minimize risk, the majority of your portfolio should be invested in stable, established, non-speculative securities, and preferably ones that pay good dividends or offer opportunities for growth.

One of the easiest ways to avoid risk is to invest in mutual funds or ETFs. This type of fund pools money from a number of investors. With a larger amount of money to play with, mutual fund managers can spread it out over a broader range of securities than each individual investor would be able to buy on their own. You can also diversify risk by investing in different types of asset classes. Between stocks, bonds, commodities, real estate, and business ownership, there are a number of vehicles for producing cash flow. A capital asset like a paid-off rental property can even produce free cash flow, unencumbered by expenses (this is every investor’s golden egg).

If your money is diversified, when one of your investments takes a hit, you won’t have to lose all your eggs—you’ve placed them in different baskets. While much ink has been spilled about which type of asset can consistently outperform the others in terms of growth, everyone can agree that at different times one asset outperforms the others; they all carry a degree of historical volatility (even real estate). 

If you do want to pick out which stock comprises your portfolio, another strategy for reducing risk is to invest in established, stable companies—but these companies are stable beyond their beta score. Large blue-chip companies, like those you’ll find in Warren Buffet’s portfolio, have been around for decades. They are well run, well-financed, and have low amounts of debt. Beta says nothing about the degree of competence with which a company is run, although competently-run, long-standing companies usually do have a lower beta score.

Even if you’re trying to avoid too much risk, most financiers would agree that it’s okay to take a small percentage of your portfolio (financial experts such as Benjamin Graham have suggested no more than 5%) and look at cheap stocks to buy. These stocks might be riskier, but they can also provide good returns if they work out. If they don’t, your losses will be marginal.

Is It Smart to Invest in Low Beta Stocks?

While beta is used to analyze risk, it does have some shortcomings. As mentioned, beta is a comparative statistic that says nothing about how a company is run. It’s been described by analysts as a sort of rearview mirror, reflecting what’s behind, but not necessarily what’s ahead (which, by contrast, is very impacted by the degree of managerial competence and current events).

That said, beta can be a good tool for short-game investors looking to minimize risk. For long-term investors, it’s not necessarily that useful.

Moreover, beta is a number that says nothing about a stock’s price movement in terms of whether it’s going up or down. All beta tells you is a stock’s volatility relative to the market. This is especially problematic in light of the fact that investors, especially short-term traders, make their moves based on stock prices. However, in conjunction with other stats that give a more complete picture of a stock and its performance, beta can be a useful tool for assessing a security’s level of risk—for short term investors. Long-term investors will want to get a more complete picture of a company, how it’s run, and its level of debt before making an investment.

Investors should not just look at a stock’s beta, but also examine their own level of risk tolerance. Younger investors building a retirement portfolio can afford to take on more risks. After all, they have decades of investment ahead of them. Older investors nearing retirement want to avoid risk and do what they can to stabilize their portfolio as much as possible since it will become a source of income.

There are many strategies for investing in stocks, and they all depend on the investor's preferred mode of gain. A dividend investing strategy can turn rivulets of pennies into a mighty dividend stream, which is great for investors who want passive income. Day trading is great for investors who are skilled enough to leverage swings in the most volatile stocks at the drop of a hat. Other investors might find themselves somewhere between the long game and the short game, figuring out the best growth stocks to scoop up and sell at a profit weeks or months later.

Institutional investors may make a beta calculation as part of their equity and growth strategy, but it’s not the only tool they leverage for assessing how to respond to systematic risk. They do an in-depth micro and macro analysis of stats like market capitalization and general market volatility. Investors also perform fundamental and financial analysis of a company to consider future growth and dividend yield.

Low Beta Stocks

Beta tells you how risky a stock is by comparing its activity to that of the market. It’s important to combine financial signifiers like beta and even professional analyst ratings with fundamental analysis of a company. Alternatively, you can turn over investment decisions to a money manager.

Assessing the balance between risk and reward as it relates to financial gain is the bread and butter of short-term trading. But if short-term trading is not for you, you may consider other strategies such as searching for dividend-paying stocks, the snowballing equity of which can be rolled back into more dividend stocks. Retail investors can also piggyback invest by mimicking the portfolio of established investors with a track record of success. These strategies can be a much easier way for the average investor to increase their stock market earnings than attempting to leverage stock market beta. However, if you are looking to leverage short positions through day trading or similarly short-term asset growth, beta can be a useful tool for determining the risk of a particular security.

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