Beta is a projection of how much volatility can be expected from a stock. Stocks that have a beta measurement of more than 1 are more volatile than market averages. Stocks with a reading of less than 1 have less volatility than the market. High Beta Stocks Beta is the result of a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Note: Beta estimates are based on weekly returns over the past 250 weeks. The market return is measured using the capitalization-weighted S&P 500 index of large-cap stocks.Changes over time in the characteristics of a company which affect the way the its stock price covaries with the overall market become reflected in the time-varying beta estimates. If an equity mirrors the benchmark, then it carries a Beta of 1.00. If Stock X has a Beta of 2.00, it is expected to rise (or fall) twice as much as the movement of the benchmark. For example, if the NYSE Composite Index rises (falls) 10%, Stock X will likely rise (fall) 20%. (For a more detailed overview, see Understanding Beta).
13 Sep 2013 quintile, we then sort using stock level beta. This forces an equal number of stocks into each of the 25 portfolios. Our findings are largely similar
What the number means. A stock's beta compares its historical movements to the overall market, or a stock index -- usually the S&P 500. The beta (β) of an investment security (i.e. a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and is an integral part of the Capital Asset Pricing Model ( CAPM Capital Asset Pricing Model (CAPM) The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security. Beta is the result of a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Beta The measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, Definition: Stock beta, represented by the beta coefficient, is an investment metric that assesses the risk and associated volatility of a certain investment in relation to the market. In laymen’s terms, it’s an estimate of the stock’s risk or volatility in comparison to what the market reflects as the average risk. A beta of 0.0 means the stocks moves don’t correlate with the S&P 500 A beta of -1.0 means the stock moves precisely opposite the S&P 500 The higher the Beta value, the more volatility the stock or portfolio should exhibit against the benchmark.
The higher the negative number, the more volatile the stock. As you can see, beta is all
13 Sep 2013 quintile, we then sort using stock level beta. This forces an equal number of stocks into each of the 25 portfolios. Our findings are largely similar 19 Jan 2012 Beta, on the other hand, is based on the volatility—extreme ups and downs in prices or trading—of the stock or fund, something not measured 15 Jul 2014 Beta is used in the capital asset pricing model (CAPM), a model that For example, if a stock's beta is 1.3, then theoretically it's 30% more 17 Dec 2016 Stock beta is used by investors to examine the risk-return beta. As the number of observations included in the estimation increases, there is a 15 Jun 2012 In the CAPM, beta is the measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. High-beta
High Beta Stocks Beta is the result of a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance.
Beta is a projection of how much volatility can be expected from a stock. Stocks that have a beta measurement of more than 1 are more volatile than market averages. Stocks with a reading of less than 1 have less volatility than the market. High Beta Stocks Beta is the result of a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Note: Beta estimates are based on weekly returns over the past 250 weeks. The market return is measured using the capitalization-weighted S&P 500 index of large-cap stocks.Changes over time in the characteristics of a company which affect the way the its stock price covaries with the overall market become reflected in the time-varying beta estimates.
What the number means. A stock's beta compares its historical movements to the overall market, or a stock index -- usually the S&P 500.
Beta is a measurement of a stock's price fluctuations, which is often called the mean, or average price, divided by the total number of price values you have. 22 Jan 2020 High beta stocks should have stronger returns during bull markets (and The result, expressed as a number, shows the security's tendency to