How to Calculate Beta To calculate the beta of a stock, you need historical price data for both the stock and the market index.

Beta is a way to quantify a stock’s systematic risk. In simple terms, systematic risk refers to investment risk related to the movement of the entire market. Beta can help you answer questions like, ...

Finally, calculate the variance of the index (derived from the index daily price changes to show how they are distributed around the average), and divide the covariance by the variance.

When it comes to evaluating stocks, one of the most widely used risk measures is Beta. It tells investors how a stock or a portfolio moves in relation to the overall market, usually represented by an ...

Portfolio beta is the measure of an entire portfolio’s sensitivity to market changes while stock beta is just a snapshot of an individual stock’s volatility.

Learning how to calculate your portfolio beta can help you manage risk and maximize your profit potential. Find Out More.

Beta is a measurement of an asset’s risk compared to a benchmark, like the stock market. The market or benchmark used to calculate an asset’s beta always has a beta of 1. Stocks that have a ...

In a previous post, we presented a method for calculating a stock beta and implemented it in Python.

Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and ...