No Guts, No Glory: Highest Beta Stocks In the Market

High beta stocks have large price fluctuations, and thus, have big potential for profits. On the other hand, they also have big potential for losses. Traders love stocks with high beta values since it is, in essence, a way to maximize leverage and garner higher returns. Beta is a calculation of a stock's volatility as it relates to the market. The market has a beta of 1.0, and stocks are assigned a beta value according to how much they diverge from the overall market. For example, if a stock moves exactly the same percentage as the underlying market, it is assigned the market's beta of 1.0. If a stock moves more than the market, its beta is above 1.0. Conversely, if the stock moves less than the market, its beta is below 1.0. Example: If a stock swings 50% more than the underlying market, it is assigned a value of 1.5. If a stock swings 50% less than the underlying market, it is assigned a value of 0.5. The downside of the beta value is that it is a measure of past price movement and has no bearing on a stock's future volatility. Major news, earnings, policy changes, etc., all may cause a reaction that dramatically alters the stock's performance. Beta is not generally an applicable tool for investors with a long-term outlook. It is more valuable for traders or investors with shorter time perspectives. The ten stocks with the highest beta value in the market are (minimum 100,000 share average daily volume): 1) MercadoLibre MELI: MercadoLibre has a beta value of 4.55. The stock recently tested, and failed to break above its 52-week high of $92.73, which was set on April 28th. The stock has 12.9% over the past eight trading sessions. 2) Visteon VC: Visteon has a beta value of 4.30. The stock has been stuck in a consolidation range ($27.50 to $29.50) since May 11th. 3) Commercial Vehicle Group CVGI: Commercial Vehicle Group has a beta value of 3.71. The stock has lost 19.8% since the beginning of May. Shares have found strong support around $13.50. 4) Trina Solar TSL: Trina Solar has a beta value of 3.68. The stock's 50-day simple moving average recently crossed below its 200-day simple moving average (one year daily chart), which is a bearish indicator known as the “Death Cross.” 5) AK Steel Holding AKS: AK Steel has a beta value of 3.58. The stock is looking to break above resistance at $15.50. After that, no resistance comes into play until $17. 6) Dana Holding DAN: Dana Holding has a beta value of 3.57. The stock has been in a tight consolidation range since March 11th. 7) Silver Wheaton SLW: Silver Wheaton has a beta value of 3.47. The stock has lost 15.3% over the past ten trading sessions. 8) Cogent Communications CCOI: Cogent Communications has a beta value of 3.43. The stock recently hit a 52-week high of $16.44, which it set on June 1st. 9) GT Solar International SOLR: GT Solar International has a beta value of 3.22. The stock is looking to test its 52-week high of $14.00, which it set on June 2nd. 10) Patriot Coal PCX: Patriot Coal has a beta value of 3.16. The stock is trading just above its 200-day simple moving average ($19.79 on a one year daily chart).