High-beta stocks turn high-flyers as market surges

Three-fourths of stocks with a beta greater than one outperform Sensex in the past one year

The surge in the market in the past year and hope of a further rally have put the spotlight back on high-beta stocks.

Beta is a measure of a scrip’s volatility or price risk. A beta of one means the scrip move in line with the market; higher than one means the volatility is more than the general market. if a stock's beta is 1.2, it’s theoretically 20 per cent more volatile than the market.

Three-fourths of stocks from the BSE 500 pack with a beta greater than one have outperformed the benchmark 30-share Sensex. On the other hand, only