Measure a stock's volatility relative to the market using price data.
Enter opening and closing prices for each period. Returns will be auto-calculated and used to compute beta.
Beta Formula
β = Cov(Rstock, Rmarket) / Var(Rmarket)
Where Cov is covariance and Var is variance
Beta measures a stock's volatility in relation to the overall market. Here's how to interpret beta values and use them in your investment decisions.
Less volatile than the market. Tends to be less affected by market swings.
Moves in line with the market. Expected to match market performance.
More volatile than the market. Tends to amplify market movements.
Collect opening and closing prices for the stock and the market index (e.g., GSE Composite Index points) for the same periods.
Input the opening and closing prices for each period. The calculator will automatically compute the percentage returns.
Click "Calculate Beta" to compute the stock's beta coefficient using the auto-calculated returns.
Use beta to assess the stock's risk profile. Higher beta stocks may offer higher returns but come with greater risk.