Negative BETA Stocks vs. SPY
(NYSE American: August 20, 2021 (market close)
‚Äč(Five US Stock Exchanges: July 27, 2021 (market close)

These stocks have negative BETA when compared to SPY (the S&P 500 ETF) for 1 year.

BETA is calculated by the covariance of a stock versus an index, like $SPY, divided by the variance of the index.  We calculate this based on daily close prices over a year.

BETA for a stock is the degree that a stock moves with an index. BETA is the degree of correlation.  A stock with a BETA of 1.0 means the covariance of the stock vs. the index equals the variance of the index, or that their variability matches.  So, if the index rises by 2%, then the stock will also likely rise by 2%.  A BETA of more than 1.0 implies the stock has greater momentum than the index.  We see stocks with BETA of 3.0 or greater over the past year which have tremendous momentum, almost like leverage in your portfolio.  These are very risky stocks to hold in case the market index declines.

A stock with a BETA of zero moves independently, or without a relationship, to the underlying index.  For example, $TVC, which is a stock ticker that buys you a $25 bond issued by the Tennessee Valley Authority, likely has a BETA near zero.  This ticker moves with interest rates of a duration equal to the bond.

Negative BETA stocks moved in the opposite direction of the index. A stock with a negative BETA fell when the index rose, and rose when the index fell.  It is not common as most stocks move with their index, hence the expression a rising tide lifts all boats.  Negative BETA stocks are an anomaly. 

Negative BETA may be caused by anomalous trading activity (e.g., MEME stocks), poor business performance during a rising market, or a counter-cyclical stock that moves against the market (e.g., discount retailers).

However, some believe they can hedge their portfolios by holding a mix of positive and negative BETA stocks.  This is why we publish our list of Negative BETA Stocks after we run a quantitative stock analysis.

Here are all stocks with negative BETA values (in descending order).

   GME -1.2924878802838424
   AMC -1.0358800439132791
   LUB -0.9280041493147769
  EXPR -0.7858731447333764
  TTNP -0.68329112630098
  AHPI -0.6397162170768343
  CODX -0.4849986452311264
  ISIG -0.47046449250699557
   ODT -0.42737197733480575
   CVM -0.34220190284729773
  DGLY -0.2785048742770971
   APT -0.19835438852981999
  ARPO -0.19111905438555452
  RETO -0.15807752043590714
  SRRK -0.15511263369495554
  ONTX -0.1432632988922305
  QDEL -0.07794838802797731
    TR -0.07275889096204413
  SANW -0.06723734878700155
  RSSS -0.020606899496607774

Here is a more recent list of NYSE American Stocks with negative BETA from Friday, August 20, 2021 (market close).
Ticker   BETA
CVM     -0.39
APT      -0.17

Note: It is not always easy to find the right index to calculate BETA.  You need clean and complete data (every day).  We faced this issue the first time we analyzed the Turkish stock market for a potential client.  We had to use a US-listed iShares ETF (TUR) and lost almost half our tickers during data validation to negative BETA. 

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