Beta statistics, frequently used in finance, provide a crucial measure of the risk associated with an investment relative to market movements. Commonly employed in the Capital Asset Pricing Model ...

It's simple to calculate the beta coefficient over a certain period. ... Because regression coefficients are called "betas" (β) in statistics, the terminology was carried over to investing.

Beta measures a stock’s volatility compared to the overall market. A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves ...

To calculate the beta of Apple Inc. (NASDAQ: AAPL) as a specific example using the covariance/variance method, you would take the covariance of the expected return on AAPL stock to the average ...

A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves ...

Learn what beta is, how to calculate it, and how to use it to assess the systematic risk and the expected return of your investments. Skip to main content LinkedIn Articles ...

A company’s beta is a measure of its volatility compared to the broader market. Here are two methods for calculating the beta of a private company.

Calculating Dual-Beta in Excel. 1. Choose your period and frequency. Think about your style and outlook as an investor. Keeping this in mind, decide which period to use (I recommend 10 years).

The article How to Calculate Beta From Volatility and Correlation originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days .

3. Analyze correlations: Calculate covariance between your stock and market returns and find their standard deviations using statistical software or spreadsheet tools. 4. Divide covariance by variance ...