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How Does Investing In Jet Freight Logistics Limited (NSE:JETFREIGHT) Impact The Volatility Of Your Portfolio?

May 30, 2019 / Simply Wall
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If you own shares in Jet Freight Logistics Limited (NSE:JETFREIGHT) then it’s worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. 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 mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements.