Is Continental Materials Corporation (NYSEMKT:CUO) A Volatile Stock?
Simply Wall St.24 April 2019, 18:23 GMT. If you own shares in Continental Materials Corporation (NYSEMKT:CUO) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price. Given that it has a beta of 0.90, we can surmise that the Continental Materials share price has not been strongly impacted by broader market volatility (over the last 5 years).