Beta Calculator
Calculate Beta coefficient to measure stock volatility relative to market movements
Stock Analysis
Enter returns separated by commas (e.g., 5, 10, -3, 8, 15)
Enter market returns for the same periods (e.g., 3, 7, -2, 6, 12)
Ready to Calculate
Enter stock and market returns to calculate Beta coefficient.
How to Use the Beta Calculator
Enter Stock Information
Start by entering the stock ticker symbol (e.g., AAPL for Apple) and the historical returns for your chosen stock over specific time periods.
Input Market Returns
Enter the corresponding market returns (usually S&P 500 or relevant market index) for the same time periods as your stock returns. Ensure both datasets have the same number of periods.
Select Time Period
Choose the time frequency of your data - daily, weekly, monthly, quarterly, or yearly. This should match how your return data is calculated.
Analyze Beta Results
Review the calculated Beta coefficient, correlation, and R-squared values. The Beta shows how much the stock moves relative to the market.
Interpret Risk Level
Use the risk level and interpretation to understand the stock's volatility characteristics and make informed investment decisions.
Beta Analysis Tips
Beta of 1 means the stock moves exactly with the market, while Beta > 1 indicates higher volatility than the market
Beta < 1 suggests the stock is less volatile than the market, often considered defensive investments
Negative Beta indicates the stock moves opposite to the market direction, which is rare but can provide portfolio diversification
Use at least 24-36 monthly returns for reliable Beta calculation, or 2-3 years of data
Higher R-squared values (above 0.7) indicate stronger correlation and more reliable Beta estimates
Consider using the same market index that most closely represents your stock's sector or market
Beta can change over time, so recalculate periodically to reflect current market conditions
Combine Beta analysis with other risk metrics like standard deviation and Sharpe ratio for comprehensive risk assessment
Technology and growth stocks typically have higher Betas, while utilities and consumer staples have lower Betas
Use Beta for portfolio construction - mix high and low Beta stocks to achieve desired risk level