Beta Coefficient Calculator
Calculate the beta coefficient to measure a stock's systematic risk relative to the overall market.
How to Use the Beta Coefficient Calculator
- Enter the covariance between the stock and market returns.
- Enter the variance of market returns.
- Click Calculate.
- Review beta and risk profile.
Casos de Uso
- •CAPM calculations
- •Portfolio risk assessment
- •Stock volatility analysis
Fórmula
β = Cov(Ri, Rm) / Var(Rm)
Preguntas Frecuentes
What does beta of 1 mean?
A beta of 1 means the stock moves in line with the market — same direction and magnitude.
Is negative beta possible?
Yes, a negative beta means the asset tends to move inversely to the market, like gold during market crashes.
Is this calculator free?
Yes, all calculators are completely free.