Beta Coefficient Calculator
Measure a stock's volatility relative to the market.
Enter your values
ⓘ Live results
Results
- Beta
- 1.39
- Interpretation
- Significantly more volatile than the market
- Data points used
- 6
Quick answer
A beta above 1 means a stock is more volatile than the market; below 1 means less volatile; negative beta means it tends to move opposite the market.
Beta = Covariance(stock, market) / Variance(market)
How to use the Beta Coefficient Calculator
- 1Enter matched period returns for the stock and the market index, in the same order.
- 2The calculator computes covariance and market variance to derive beta.
- 3Use at least 12-24 periods (e.g., months) for a more reliable estimate.
Worked example
Using the values the calculator loads with:
Inputs
- Stock returns (comma-separated %)5, -2, 8, 3, -1, 6
- Market returns (comma-separated %)3, -1, 5, 2, -2, 4
Results
- Beta1.39
- InterpretationSignificantly more volatile than the market
- Data points used6
Frequently asked questions
What does beta = 1 mean?
The stock's price tends to move in line with the overall market.
Is beta a good measure of risk?
It captures market-related (systematic) risk only, not company-specific risk, so it's one input among several.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.