What Is Beta?
Beta measures how much a stock's price moves compared to the market (S&P 500). A beta of 1.0 means the stock moves in line with the market. A beta of 1.5 means it's 50% more volatile — rising and falling more dramatically.
Formula
Beta = Covariance(Stock Returns, Market Returns) / Variance(Market Returns)Why It Matters
High-beta stocks offer more upside in bull markets but more downside in bear markets. Conservative investors prefer low-beta stocks (0.5-0.8). Aggressive investors seek high-beta stocks (1.5+) for amplified returns.
Typical Ranges: Below 0.8 is low volatility. 0.8-1.2 is market-like. Above 1.5 is high volatility.
Real Examples from Our Database
CDLRCadeler A/S
0.5DVR 9.3
SOFISoFi Technologies Inc
0.0DVR 9.2
TEMTempus AI Inc
5.3DVR 9.2
ATATAtour Lifestyle Holdings Ltd
0.8DVR 9.2
QXOQXO Inc
2.5DVR 9.1
Based on the latest data in our system. Values may change.
Related Terms
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