Low Volatility Anomaly in the Stock Market

Historical prices of Bitcoin. Source: https://www.coindesk.com/price/bitcoin
Historical prices of GameStop (ticker: GME). SOURCE: https://finance.yahoo.com/
Historical compound returns for risky (red) and safe (blue) portfolios. Source: https://www.ivo-welch.info/research/histbetapfios.svg

“High Returns Must Come with High Risks”

Risky stocks (brown) go up and down more than the stock market (blue), while safe stocks (yellow) move more smoothly. Source: https://learn.robinhood.com/articles/EBYb8K3dHtIwluGqOhZDQ/what-is-beta/

Big Investors, Small Investors



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