Stock markets have always been volatile. A stock market jolt is always caused by economic ups and downs, political activities, and changes in government rules and regulations. In addition to the market’s volatility, there is an assortment of stocks with greater price movements that make them among the most volatile stocks to trade. The price of a volatile stock fluctuates by a large percentage every day.
Volatility is a measure of the change in price or return of a specific stock or financial instrument over some time. Diversification and different investment strategies can also help mitigate the risk of volatile stocks.
Volatility Trading
Day trading volatile stocks is usually done in short bursts and falls under the category of day trading. The goal of day trading is to generate maximum profits daily. In one day, there are more buys and sells.
Stock volatility can also be measured by volume. Additionally, the high trading volume makes it easy to buy and sell stocks. You will be stuck with the purchase regardless of how cheap it was if the trading volume is not high.
Timing is another important factor to consider when trading volatile stocks. A good investor needs to act quickly to make the most of an opportunity. Volatile stocks are not easy to trade, and every second counts during a trade.
List of most volatile stocks in the market:
The following are the top 10 most volatile stocks in the market during the financial year 2021. Let’s explore:
1. Prospect Capital (PSEC)
Investors in Prospect Capital Corporation benefit from steady and attractive returns. Investing in debt and equity will enable Prospect to generate current income as well as long-term capital appreciation.
Additionally, Prospect Capital’s market capitalization is about $3 billion. During the past 10 days, 2,15 million shares have been traded.PSEC’s 5Y Monthly Beta is 0.93, making it moderately volatile.
2. Realty Income (O)
Real Estate Income, The Monthly Dividend Company, is dedicated to providing shareholders with a steady stream of monthly income. Besides providing a steady dividend to its investors, the company also gives an additional bonus every year based on the company’s performance.
The company’s market capitalization is approximately $24 billion. Shares have traded on average of 3.1 million over the past 10 days. Realty Income has a 5Y Monthly Beta of 0.72, which makes it moderately volatile.
3. STAG Industrial (STAG)
In the United States, STAG Industrial Inc. operates by acquiring single-tenant industrial properties. By adopting this approach to business, STAG Industrial can maintain company growth and provide an appealing return to investors.
The company’s market capitalization is approximately $5.4 billion. The average traded volume during the last 10 days is 1.21 million shares. It has a 5 Year Beta of 0.92, which indicates moderate volatility.
4. Shaw Communications (SJR)
Shaw Communications Inc. is a leading provider of connectivity solutions in Canada. The company provides broadband Internet, data, WiFi, digital phone, and video services to consumers and businesses.
The market capitalization of Shaw Communications is $9.7 billion. For the last 10 days, the average traded volume was 3 million shares. It is 0.44 for the 5Y Monthly Beta.
5. LTC Properties (LTC)
LTC Properties Inc. is a real estate investment trust with a well-structured portfolio of leases and mortgages.
It has a market capitalization of approximately $1.73 billion.LTC Properties’ 5Y Monthly Beta is 0.95, making it a moderately volatile stock.
6. Gladstone Investment Corporation (GLAD)
In the United States, Gladstone Investment Corporation acquires, owns, and operates net-leased industrial and office properties.
Additionally, Gladstone Investment Corporation has a market capitalization of approximately $327 million. Gladstone’s 5Y Monthly Beta is 1.45, making it extremely volatile.
7. Urban One (UONE)
A multi-media company operating in the U.S., Urban One Inc., and its subsidiaries are urban-oriented. In addition to Radio Broadcasting and Cable Television, the company also engaged in Reach Media and Digital. Through its media channels, the company primarily targets African-Americans and urban populations.
Additionally, Urban One has a market capitalization of approximately $127 million. Gladstone’s 5Y Monthly Beta is 1.02, making it a moderately volatile stock.
8. Alterity Therapeutics (ATHE)
A biotech company called Alterity Therapeutics Limited is developing drug therapies to treat Parkinson’s disease and other neurodegenerative diseases in Australia. Its lead drug candidate is ATH434 which is used to treat Parkinson’s disease. In the process of developing PBT2, an antimicrobial agent will develop.
Additionally, Alterity Therapeutics has a market capitalization of approximately $57 million. Alterity Therapeutics has a 5Y Monthly Beta of 0.89, making it a moderately volatile stock.
9. Simon Property Group (SPG)
A global leader in the ownership of premier shopping, dining, and entertainment destinations, Simon owns mixed-use assets such as hotels. In addition, it is one of the largest real estate investment trusts.
Additionally, Simon Property Group’s market capitalization approximately $39 billion. Simon Property Group is also an extremely volatile stock at 1.56 beta over 5 years.
10. Carver Bancorp Inc. (CARV)
It owns and operates Carver Federal Savings Bank, a federally chartered savings bank that offers consumer and corporate banking products and services. Besides providing mortgage loans to families to purchase properties, Carver also offers mortgage loans for the construction or renovation of commercial or residential property, and it provides a loan to businesses and non-profit organizations.
Furthermore, Carver Bancorp has a market capitalization of approximately $37 million. Alterity Therapeutics’ 5Y Monthly Beta is 1.41 making it an extremely volatile stock.
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