Beta

Asset symbol is not found or was delisted

We are unable to locate this entity at this time. If you believe the symbol you are trying to look up is valid, please let us know, and we will check it out. Check all delisted instruments across multiple markets.

Indicator Description

In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Beta

 = 

Covariance

Variance

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Beta In A Nutshell

If you’re looking to measure risk, Beta is the Greek data point you want to use. When building a portfolio or looking at ETF products, a good way to judge how the risk factor may be is to compare Beta levels. If you want a portfolio that tracks the market, then you want it to be closer to 1, but if you are looking for more volatility, then you can exceed the 1 market for greater movements when the market moves.

Beta is the measurement of how an equity or product moves with the underlying instrument it is attached with. Beta is measured as follows, if a product has a Beta of 1 or above, than the product is more volatile, but if it falls below 1, it will be less volatile. When a Beta is at 1, that means it will move in rhythm with the asset it is tied with. For example, the ETF ticker SPY that follows the S&P 500 will have a Beta near 1 because it is supposed to follow the S&P 500 Index. Conversely, if you invest in an inverse ETF, it will likely be near a 0 Beta because it moves in the opposite direction of the market it is intended to follow.

Closer Look at Beta

There are other means to measure risk such as fundamental analysis, which can give you insight to any issues that could b arising. Also, you can just look and analyze a chart using indicators and technical analysis to determine the possible risk at your point of entry. Not only is there Beta, but there are many other Greek symbols that can be used, but be sure to read up on what each one means. If you ever get stuck, reach out to an investing community and then can help to explain it and help you through any misunderstandings.

Other Suggestions

V Visa Class ACompany
VIASP Via RenewablesCompany
VVR Invesco Senior IncomeFund
VB Vanguard Small Cap IndexETF
VXD DJIA VolatilityIndex
VIB VIBCryptocurrency
V6703DAA2 BHARTI 565Corporate Bond

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Investing Ideas

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked. Macroaxis thematic optimization helps investors identify companies most likely to benefit from changes or shifts in various micro-economic or local macro-level trends. Originating optimal thematic portfolios involves aligning investors' personal views, ideas, and beliefs with their actual investments.
Explore Thematic Ideas
Explore Investing Ideas  
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Volatility Analysis
Get historical volatility and risk analysis based on latest market data