Stock Beta Calculator
Calculate the volatility (β) of a stock relative to the overall market. Beta measures systematic risk.
Example: 0.02, 0.015, -0.01, 0.03, -0.005 (for 2%, 1.5%, -1%, etc.)
Must match the number of stock returns entries
Beta (β) Coefficient
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Interpretation:
- β = 1: Stock moves with the market
- β < 1: Less volatile than market (defensive)
- β > 1: More volatile than market (aggressive)
- β < 0: Inverse relationship to market (rare)
Additional Metrics
Alpha (α):
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Correlation (R):
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R-squared:
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About Beta (β)
Beta measures a stock’s sensitivity to market movements. It’s calculated using regression analysis of the stock’s returns against market returns.
Formula: β = Covariance(Stock Returns, Market Returns) / Variance(Market Returns)
Alpha (α) measures performance relative to the market after accounting for risk (β). Positive alpha indicates outperformance.