Risk-averse investors are always on the lookout for stocks that are less exposed to the market. Less market exposure means a lower decline than the market in case of a downturn. Such a portfolio can easily be built on the low beta strategy that identifies stocks less prone to risks than the market. Beta Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here). If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility. Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing. However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern. The Winning Strategy In our screening criteriawe included beta in the range of 0 to 0.6 for short listing low risk stocks. But this can’t be the only criterion for betting on stocks. The other parameters that need to be added to create a winning portfolio are: Percentage Change in Price in the Last 4 Weeks greater than zero:This ensures that the stocks saw positive price movement over the last one month. Average 20 Day Volume greater than 50,000:A substantial trading volume ensures that the stocks are easily tradable. Price greater than or equal to $5:They must all be trading at a minimum of $5 or higher. Zacks Rank equal to 1:Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. Here are five of the 10 stocks that qualified the screening: ULTA Salon Cosmetics & Fragrance Inc. (ULTA) Orthofix International NV (OFIX) Newmont Mining Corporation (NEM) Windstream Holdings, Inc. (WIN) Fabrinet (FN) You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks’ portfolios and strategies are available at: http://www.zacks.com/performance. Zacks Restaurant Recommendations: Inaddition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FABRINET (FN): Free Stock Analysis Report ORTHOFIX INTL (OFIX): Free Stock Analysis Report NEWMONT MINING (NEM): Free Stock Analysis Report ULTA SALON COSM (ULTA): Free Stock Analysis Report WINDSTREAM HLDG (WIN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research