RT Journal Article
SR Electronic
T1 Negative Beta Equity Securities as Insurance
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 69
OP 73
DO 10.3905/jwm.2021.1.156
VO 24
IS 4
A1 Tom Arnold
A1 Terry D. Nixon
YR 2022
UL https://pm-research.com/content/24/4/69.abstract
AB Theoretically, an equity security with a negative CAPM beta should behave like portfolio insurance in the sense that the security provides a positive return during a market downturn. However, equity securities with negative betas are relatively rare and simply determining that an equity security exhibits a negative beta is not enough for determining if the negative beta equity security will perform in the desired manner. Negative betas can, at times, be attributed to causes that diminish those securities' usefulness as insurance. Some of these causes are explored in this article.