Beta Calculator

Use our free beta calculator to measure a stock's volatility relative to the overall market. Enter comma-separated historical returns for the stock and market to compute beta, covariance, and alpha.

Financial

Stock Returns (comma-separated %)

Market Returns (comma-separated %)

Formula

Beta measures the volatility of a stock or portfolio relative to the overall market. A beta of 1 means the stock moves with the market. Above 1 is more volatile (aggressive), below 1 is less volatile (defensive).

Î² = Cov(Ri, Rm) / Var(Rm)

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter historical stock returns as comma-separated percentages.
2Enter historical market returns as comma-separated percentages.
3The calculator computes covariance and market variance.
4Beta is calculated as covariance divided by market variance.

Examples

Stock: 2, -1, 3, 1.5, -0.5, 2.5 | Market: 1.5, -0.5, 2, 1, -0.2, 1.8

1.Calculate average returns
2.Compute covariance and variance
3.Beta = Cov / Var

Result: 1.250

Frequently Asked Questions

A beta of 1 indicates the stock moves in line with the market. If the market goes up 1%, the stock is expected to go up approximately 1%.

Defensive stocks have a beta less than 1. They are less volatile than the market and tend to hold up better during downturns. Examples include utilities and consumer staples.

Aggressive stocks have a beta greater than 1. They are more volatile than the market, amplifying both gains and losses. Examples include technology and growth stocks.

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Beta Explained

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

A beta of 1 indicates the stock moves in line with the market. If the market goes up 1%, the stock is expected to go up approximately 1%.

Defensive stocks have a beta less than 1. They are less volatile than the market and tend to hold up better during downturns. Examples include utilities and consumer staples.

Aggressive stocks have a beta greater than 1. They are more volatile than the market, amplifying both gains and losses. Examples include technology and growth stocks.

Beta Calculator

Formula

How It Works

Examples

Stock: 2, -1, 3, 1.5, -0.5, 2.5 | Market: 1.5, -0.5, 2, 1, -0.2, 1.8

Frequently Asked Questions

What does a beta of 1 mean?

What is a defensive stock?

What is an aggressive stock?

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Beta Calculator

Formula

How It Works

Examples

Stock: 2, -1, 3, 1.5, -0.5, 2.5 | Market: 1.5, -0.5, 2, 1, -0.2, 1.8

Frequently Asked Questions

What does a beta of 1 mean?

What is a defensive stock?

What is an aggressive stock?

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Related Articles