On the basis of latest market research report, it has been revealed that the investors who choose to stick with high-beta stocks, have managed to get good returns, compared with BSE-benchmarked Sensex.

A reports published by Centre for Monitoring Indian Economy (CMIE) has disclosed that in the last 30 days, the top BSE-listed 100 stocks with highest beta have given an average 32% more than the benchmark's returns (of around 28%) while, the 100 stocks with lowest beta have underperformed Sensex by 7% in the same time.

The report shows that, shares like India Infoline (beta of 2), Orbit Corporation (beta of 1.93), Unitech (beta of 1.86), IFCI (beta of 1.71), Everonn Systems (beta of 1.69), Hindustan Construction (beta of 1.66), Aptech (beta of 1.62) have all delivered over 50% excess returns, which Sensex gave during the period.

It should be noted that Beta is the measure of the volatility of a particular stock in comparison with the market. It indicates the stock's correlation with the market index and cautions on the risk associated with it.

For example, Unitech has a beta of 1.86 while Hindustan Unilever's beta is only 0.43, which indicates that Unitech is 86 per cent more risky than the Sensex and Hindustan Unilever 57 per cent less risky than the index. Essentially, if the BSE-benchmarked Sensex falls by say 10 per cent, Unitech would correct by 18.6 per cent and HUL only by 4.3 per cent.