{"id":2099,"date":"2024-05-28T10:22:17","date_gmt":"2024-05-28T06:22:17","guid":{"rendered":"https:\/\/eoninvestment.com\/?p=2099"},"modified":"2024-06-11T15:12:56","modified_gmt":"2024-06-11T11:12:56","slug":"upside-vs-downside-%ce%b2","status":"publish","type":"post","link":"https:\/\/eoninvestment.com\/ka\/2024\/05\/28\/upside-vs-downside-%ce%b2\/","title":{"rendered":"Upside vs Downside \u03b2"},"content":{"rendered":"\n

The beta coefficient is very useful for assessing an organization’s risk. It describes well how the stock price responds to changes in the overall market index, which in turn indicates systematic risk and, consequently, the expected return.<\/p>\n\n\n\n

But isn’t it possible that there are organizations whose stock price sensitivity differs during market upturns and downturns? Theoretically, isn’t it possible for operational and financial leverage to be adaptable in such a way that an organization’s value increases more rapidly during positive economic trends than it decreases during negative ones?<\/p>\n\n\n\n

I created a simple model and evaluated various organizations… Interesting conclusions can be drawn – for example, I found BAC’s down-market beta to be 0.27, while its up-market beta is twice as high (0.56)… It’s not surprising why it’s in Buffett’s portfolio.<\/p>\n\n\n\n

You can download the Excel model here<\/a><\/p>\n\n\n\n

*Functions may not work in older versions of Excel<\/p>\n\n\n\n

——————————————————————————————————————-<\/p>\n\n\n\n

\u10d0\u10e6\u10db\u10d0\u10d5\u10da\u10dd\u10d1\u10d8\u10e1 \u10d3\u10d0 \u10d3\u10d0\u10e6\u10db\u10d0\u10d5\u10da\u10dd\u10d1\u10d8\u10e1 \u10d1\u10d4\u10e2\u10d0<\/h2>\n\n\n\n

\u10d1\u10d4\u10e2\u10d0 \u10db\u10d0\u10e9\u10d5\u10d4\u10dc\u10d4\u10d1\u10d4\u10da\u10d8 \u10eb\u10d0\u10da\u10d8\u10d0\u10dc \u10d9\u10d0\u10e0\u10d2\u10d8\u10d0 \u10dd\u10e0\u10d2\u10d0\u10dc\u10d8\u10d6\u10d0\u10ea\u10d8\u10d8\u10e1 \u10e0\u10d8\u10e1\u10d9\u10d8\u10e1 \u10d3\u10d0\u10e1\u10d0\u10dc\u10d0\u10ee\u10d0\u10d3. \u10d8\u10e1 \u10d7\u10e3 \u10e0\u10d0\u10db\u10d3\u10d4\u10dc\u10d0\u10d3 \u10e0\u10d4\u10d0\u10d2\u10d8\u10e0\u10d4\u10d1\u10e1 \u10d0\u10e5\u10ea\u10d8\u10d8\u10e1 \u10e4\u10d0\u10e1\u10d8 \u10d1\u10d0\u10d6\u10e0\u10d8\u10e1 \u10e1\u10d0\u10d4\u10e0\u10d7\u10dd \u10d8\u10dc\u10d3\u10d4\u10e5\u10e1\u10d8\u10e1 \u10ea\u10d5\u10da\u10d8\u10da\u10d4\u10d1\u10d0\u10d6\u10d4 \u10d9\u10d0\u10d2\u10e0\u10d0\u10d3 \u10d0\u10e6\u10ec\u10d4\u10e0\u10e1 \u10e1\u10d8\u10e1\u10e2\u10d4\u10db\u10e3\u10e0 \u10e0\u10d8\u10e1\u10d9\u10e1 \u10d3\u10d0 \u10e8\u10d4\u10e1\u10d0\u10d1\u10d0\u10db\u10d8\u10e1\u10d0\u10d3 \u10e3\u10d9\u10e3\u10d2\u10d4\u10d1\u10d8\u10e1 \u10db\u10dd\u10da\u10dd\u10d3\u10d8\u10dc\u10e1.<\/p>\n\n\n\n

\u10db\u10d0\u10d2\u10e0\u10d0\u10db \u10ee\u10dd\u10db \u10e8\u10d4\u10d8\u10eb\u10da\u10d4\u10d1\u10d0 \u10d0\u10e0\u10e1\u10d4\u10d1\u10dd\u10d1\u10d3\u10dc\u10d4\u10dc \u10dd\u10e0\u10d2\u10d0\u10dc\u10d8\u10d6\u10d0\u10ea\u10d8\u10d4\u10d1\u10d8, \u10e0\u10dd\u10db\u10d4\u10da\u10d7\u10d0 \u10d0\u10e5\u10ea\u10d8\u10d4\u10d1\u10d8\u10e1 \u10e4\u10d0\u10e1\u10d4\u10d1\u10d8\u10e1 \u10db\u10d2\u10e0\u10eb\u10dc\u10dd\u10d1\u10d4\u10da\u10dd\u10d1\u10d0 \u10d2\u10d0\u10dc\u10e1\u10ee\u10d5\u10d0\u10d5\u10d4\u10d1\u10e3\u10da\u10d8\u10d0 \u10d1\u10d0\u10d6\u10e0\u10d8\u10e1 \u10d0\u10e6\u10d0\u10db\u10dd\u10d5\u10da\u10dd\u10d1\u10d8\u10e1\u10d0 \u10d3\u10d0 \u10d3\u10d0\u10e6\u10db\u10d0\u10d5\u10da\u10dd\u10d1\u10d8\u10e1 \u10de\u10d4\u10e0\u10d8\u10dd\u10d3\u10d4\u10d1\u10e8\u10d8? \u10d7\u10d4\u10dd\u10e0\u10d8\u10e3\u10da\u10d0\u10d3 \u10ee\u10dd\u10db \u10d0\u10e0\u10d8\u10e1 \u10e8\u10d4\u10e1\u10d0\u10eb\u10da\u10d4\u10d1\u10d4\u10da\u10d8 \u10e0\u10dd\u10db \u10e1\u10d0\u10dd\u10de\u10d4\u10e0\u10d0\u10ea\u10d8\u10dd \u10d3\u10d0 \u10e4\u10d8\u10dc\u10d0\u10dc\u10e1\u10e3\u10e0\u10d8 \u10da\u10d4\u10d5\u10d4\u10e0\u10d4\u10ef\u10d8 \u10d0\u10d3\u10d0\u10de\u10e2\u10d8\u10e0\u10d4\u10d1\u10d0\u10d3\u10d8 \u10d8\u10e7\u10dd\u10e1 \u10d8\u10e1\u10d4, \u10e0\u10dd\u10db \u10d4\u10d9\u10dd\u10dc\u10dd\u10db\u10d8\u10d9\u10d8\u10e1 \u10d3\u10d0\u10d3\u10d4\u10d1\u10d8\u10d7\u10d8 \u10e2\u10e0\u10d4\u10dc\u10d3\u10d8\u10e1 \u10e8\u10d4\u10db\u10d7\u10ee\u10d5\u10d4\u10d5\u10d0\u10e8\u10d8 \u10dd\u10e0\u10d2\u10d0\u10dc\u10d8\u10d6\u10d0\u10ea\u10d8\u10d8\u10e1 \u10e6\u10d8\u10e0\u10d4\u10d1\u10e3\u10da\u10d4\u10d1\u10d0 \u10e3\u10e4\u10e0\u10dd \u10e1\u10ec\u10e0\u10d0\u10e4\u10d0\u10d3 \u10d8\u10d6\u10e0\u10d3\u10d4\u10d1\u10dd\u10d3\u10d4\u10e1 \u10d5\u10d8\u10d3\u10e0\u10d4 \u10e3\u10d0\u10e0\u10e7\u10dd\u10e4\u10d8\u10d7\u10d8 \u10e2\u10e0\u10d4\u10dc\u10d3\u10d8\u10e1 \u10e8\u10d4\u10db\u10d7\u10ee\u10d5\u10d4\u10d5\u10d0\u10e8\u10d8 \u10db\u10ea\u10d8\u10e0\u10d3\u10d4\u10d1\u10dd\u10d3\u10d4\u10e1? <\/p>\n\n\n\n

\u10d2\u10d0\u10d5\u10d0\u10d9\u10d4\u10d7\u10d4 \u10db\u10d0\u10e0\u10e2\u10d8\u10d5\u10d8 \u10db\u10dd\u10d3\u10d4\u10da\u10d8 \u10d3\u10d0 \u10e8\u10d4\u10d5\u10d0\u10e4\u10d0\u10e1\u10d4 \u10e1\u10ee\u10d5\u10d0\u10d3\u10d0\u10e1\u10ee\u10d5\u10d0 \u10dd\u10e0\u10d2\u10d0\u10dc\u10d8\u10d6\u10d0\u10ea\u10d8\u10d4\u10d1\u10d8… \u10e1\u10d0\u10d8\u10dc\u10e2\u10d4\u10e0\u10d4\u10e1\u10dd \u10d3\u10d0\u10e1\u10d9\u10d5\u10dc\u10d4\u10d1\u10d8\u10e1 \u10d2\u10d0\u10db\u10dd\u10e2\u10d0\u10dc\u10d0 \u10e8\u10d4\u10d8\u10eb\u10da\u10d4\u10d1\u10d0 – \u10db\u10d0\u10d2\u10d0\u10da\u10d8\u10d7\u10d0\u10d3 BAC-\u10d8\u10e1 \u10d3\u10d0\u10e6\u10db\u10d0\u10d5\u10da\u10dd\u10d1\u10d8\u10e1 \u10d1\u10d4\u10e2\u10d0 0.27 \u10db\u10d8\u10d5\u10d8\u10e6\u10d4, \u10d0\u10e6\u10db\u10d0\u10d5\u10da\u10dd\u10d1\u10d8\u10e1 \u10d9\u10d8 \u10dd\u10e0\u10ef\u10d4\u10e0 \u10db\u10d4\u10e2\u10d8 (0.56)… \u10d2\u10d0\u10e1\u10d0\u10d9\u10d5\u10d8\u10e0\u10d8 \u10d0\u10e0 \u10d0\u10e0\u10d8\u10e1 \u10e0\u10d0\u10e2\u10dd\u10db \u10db\u10dd\u10ee\u10d5\u10d3\u10d0 \u10d1\u10d0\u10e4\u10d4\u10e2\u10d8\u10e1 \u10de\u10dd\u10e0\u10d7\u10e4\u10d4\u10da\u10e8\u10d8.<\/p>\n\n\n\n

\u10d4\u10e5\u10e1\u10d4\u10da\u10d8\u10e1 \u10db\u10dd\u10d3\u10d4\u10da\u10d8 \u10e8\u10d4\u10d2\u10d8\u10eb\u10da\u10d8\u10d0\u10d7 \u10e9\u10d0\u10db\u10dd\u10e2\u10e7\u10d5\u10d8\u10e0\u10d7\u10dd\u10d7 \u10d0\u10e5<\/a><\/p>\n\n\n\n

*\u10eb\u10d5\u10d4\u10da \u10d4\u10e5\u10e1\u10d4\u10da\u10e8\u10d8 \u10e4\u10e3\u10dc\u10e5\u10ea\u10d8\u10d4\u10d1\u10d8 \u10d0\u10e0 \u10d8\u10db\u10e3\u10e8\u10d0\u10d5\u10d4\u10d1\u10e1<\/p>\n","protected":false},"excerpt":{"rendered":"

The beta coefficient is very useful for assessing an organization’s risk. It describes well how the stock price responds to changes in the overall market index, which in turn indicates systematic risk and, consequently, the expected return.<\/p>\n","protected":false},"author":12998525,"featured_media":2109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[31110612,37372],"tags":[],"class_list":{"0":"post-2099","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-excel-models","8":"category-risk","10":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/eoninvestment.com\/wp-content\/uploads\/2024\/05\/beta.png?fit=1036%2C615&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pQZ85-xR","_links":{"self":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/2099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/users\/12998525"}],"replies":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/comments?post=2099"}],"version-history":[{"count":11,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/2099\/revisions"}],"predecessor-version":[{"id":2550,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/posts\/2099\/revisions\/2550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/media\/2109"}],"wp:attachment":[{"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/media?parent=2099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/categories?post=2099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eoninvestment.com\/ka\/wp-json\/wp\/v2\/tags?post=2099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}