The Beta coefficient measures the systematic risk of a security, sensitivity of security's returns to market returns. As the benchmark of this measurement, the market is defined of having a beta of 1.0.
In mathematical sense, Beta is the ratio of covariance between ROC of the security and that of the market to variance of the latter.
Securities having Beta greater than 1.0 are more volatile than the market; securities with lower Beta are less volatile. Securities with Beta equal to 1.0 are said to move along with the market.
||The number of bars used in calculation of variance and covariance.|
||The number of bars used to calculate the rate of change.|
||The benchmark index against which the Beta coefficient is calculated.|
||The Beta plot.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.