What does a negative beta mean for Ford Motor Company?

Despite being rare, a stock may have a negative beta, which means the stock moves opposite the general market trend. Ford Motor Company shows a Beta of 1.84. This is higher than 1. The volatility of Ford Motor Company according to this measure is higher than the market volatility. More... More... More... Cap. Mitsubishi Motors Corpo...

What is beta and how is it calculated?

Beta is a measure of risk commonly used to compare the volatility of stocks, mutual funds, or ETFs to that of the overall market. The S&P 500 Index is the base for calculating beta with a value of 1.0. Securities with betas below 1 have historically been less volatile than the market.

What is the difference between standard beta and unlevered beta?

Standard beta is co-called levered, which means that it reflects the capital structure of the company (including the financial risk linked to the debt level). Unlevered beta (or ungeared beta) compares the risk of an unlevered company (i.e. with no debt in the capital structure) to the risk of the market.