Important Disclaimer β Not Financial Advice
The results from this calculator are for informational and educational purposes only. They are not a guarantee of actual outcomes and should not be considered financial, investment, tax, or legal advice. Always consult a qualified professional for advice tailored to your specific financial situation. See our Terms of Service and Privacy Policy for more information.
The Beta Calculator helps investors measure a specific stock's volatility in comparison to the overall market, such as the S&P 500. By understanding this coefficient, you can better assess the systematic risk associated with your investment portfolio and make more informed asset allocation decisions.
The Beta Calculator measures the volatility of a stock or investment relative to the overall market, indicating its systematic risk. A beta of 1 means the investment moves with the market, while a beta greater than 1 indicates higher volatility.
Beta is a measure of a stock's volatility compared to the overall market, with a beta of 1 indicating the stock moves in line with the market.
A beta greater than 1 suggests the stock is more volatile than the market, while a beta less than 1 indicates lower volatility.
Investors use beta to assess the systematic risk of an investment and to inform portfolio diversification strategies.
Beta is calculated using historical price data and is a key component of the Capital Asset Pricing Model (CAPM).
Beta = Covariance(Ra, Rm) / Variance(Rm)
This formula divides the covariance of the stock's returns and the market's returns by the variance of the market's returns to determine how sensitive the stock is to market movements.
An investor might use this tool when deciding whether to add a high-growth tech stock to their conservative retirement portfolio. If the market experiences a sharp downturn, a stock with a high beta will likely drop further, while a low beta stock may remain more stable. Financial advisors use this metric to ensure a clientβs portfolio risk profile matches their long-term financial goals. By inputting historical price data, users can quickly see if their current holdings are more or less volatile than the benchmark index they track.
If a stock has a beta of 1.5, it means the stock is theoretically 50% more volatile than the market. If the S&P 500 rises by 10%, a stock with this beta would be expected to increase by 15% under similar market conditions.
These authoritative sources inform our calculator methodology and ensure accuracy.
Written by Qasem Mohammed
Financial tools developer and founder of QFINHUB. All calculators are built with industry-standard formulas and reviewed for accuracy. Content is for educational purposes only β always consult a qualified financial professional for decisions about your specific situation.
Last updated: June 25, 2026 Β·About QFINHUB Β· Editorial Policy
Last reviewed by Qasem Mohammed β June 25, 2026
AI & Software Engineer, Founder & Lead Developer at QFINHUB Β· Editorial Policy
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Beta (Ξ²)
1.3261
More volatile than the market
Correlation
0.9961
Strong positive
Alpha (Intercept)
-0.4224
Underperforming
Data Points
12 pairs