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Beta

How much a stock moves relative to the overall market.

What it means

Beta measures a stock's volatility compared to the market, usually the S&P 500, which has a beta of 1.0. It is a quick gauge of how bumpy a ride to expect.

Formula

Derived by regressing a stock's returns against a market index (S&P 500 = 1.0)

Example

A beta of 1.5 means the stock tends to move 50% more than the market, up and down. A beta of 0.5 means it is half as volatile.

What is a good Beta?

This is about risk tolerance, not quality. Beta above 1 is more volatile (growth, tech); below 1 is steadier (utilities, staples). It measures volatility, not business quality.

Screen stocks by volatility

See it on real stocks

Every stock analysis page shows Beta alongside the other key metrics:

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