Risk
What is Beta (Ξ²)?
Beta measures how much a stock's price moves relative to the overall market, a stock with beta > 1 is more volatile than the market, below 1 is less volatile.
Formula
Beta = Covariance(Stock, Market) Γ· Variance(Market)
How to Interpret
Beta of 1.0 = moves with the market. Beta of 1.5 = 50% more volatile. Beta of 0.5 = half as volatile. Negative beta moves opposite to the market.
Typical Ranges
Defensive stocks: 0.5-0.8, Market average: 1.0, Growth/Tech: 1.2-1.8
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Beta.