STTrading weekend thread 8th and 9th February 2025, page-42

following on from previous post.
lets test my numbers.

lets say the xjo falls by 1%

i know the beta of my portfolio of 50k is 1.2
so when xjo goes down 1% my portfolio should fall 1.2x

so 1% x 1.2 = ,012
so im expected to be down = 50k x .012 or -$600
.
but then i have 1018 shares in bboz at 24.54
if xjo is down by 1% bboz should be up by 2.4%

so 1018 shares x 24.54 = 24,981.72 x .024 = 599.56

so i ll be down on my stocks but up the same amount on bboz.

note your stocks would still need to out perform so the overall would be a net gain.
But this should help smooth out any volatility in the market.