The TSX stocks on our list have substantial daily trading volume and ultra-low betas
SmallCapPower | June 8, 2018: For those looking to diversify or reduce their portfolio’s market correlation, we have assembled a list of highly liquid TSX stocks with low betas. As a measure of risk relative to the market as a whole, beta captures the correlation between a stock’s price movement and the rest of the market. A beta of 1 implies perfect correlation and a beta of 0 implies that the stock has no market correlation at all.
Cineplex Inc. (TSX:CGX) – $29.12
Leisure & Recreation
Cineplex is a Canada-based film exhibition company that owns and operates movie theatres. The Company has 164 theatres in 10 provinces. Its subsidiaries include Famous Players Limited Partnership, Galaxy Entertainment Inc., Cineplex Digital Media Inc., Cineplex Digital Networks Inc. and Cineplex Starburst Inc. The Company also operates a competitive eSports platform called WorldGaming.com, and restaurants/bars such as The Rec Room in Toronto. As of December 2017, Cineplex estimated that it controlled 77% of the box office market share in Canada.
- Market Cap: $1,844.3 Million
- Daily Beta – 180 Day: 0.5
- Weekly Beta – 2 Year: 0.0
- Weekly Beta, Adjusted – 2 Year: 0.3
- Average Daily Traded Value – 52 Weeks: $9.6M
- YTD Total Return: -20.2%
DHX Media Ltd. (TSX:DHX, NASDAQ:DHXM) – $3.29
Entertainment Production
DHX Media is a Canada-based creator, producer, distributor, licensor and broadcaster of kids and family television and film productions. The Company produces and distributes films and television programs for the domestic and international market. Its library includes big names such as Teletubbies, Degrassi, and Bob the Builder. To drive growth, the Company intends to expand its original content library and develop global toy brands.
- Market Cap: $441.7 Million
- Daily Beta – 180 Day: 0.0
- Weekly Beta – 2 Year: 0.1
- Weekly Beta, Adjusted – 2 Year: 0.4
- Average Daily Traded Value – 52 Weeks: $1.5M
- YTD Total Return: -26.8%
Polaris Infrastructure Inc. (TSX:PIF) – $15.07
Independent Power Producers
Polaris Infrastructure is a Canada-based company, which is engaged in the development and operation of renewable energy projects in Latin America. The Company owns the San Jacinto-Tizate Geothermal Project, with an installed capacity over the 76 Megawatts, located in northwest Nicaragua, near the city of Leon. The project has 11 production wells for exploration of steam and hot brine. Polaris is currently in the early stages of a new development project in the San Cristobal Geothermal Field. It anticipates an approval for the project sometime in Q3/2018.
- Market Cap: $263.6 Million
- Daily Beta – 180 Day: 0.2
- Weekly Beta – 2 Year: -0.3
- Weekly Beta, Adjusted – 2 Year: 0.1
- Average Daily Traded Value – 52 Weeks: $0.5M
- YTD Total Return: -11.6%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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