Beta
A figure that shows how strongly a stock tends to react to moves in the overall market.
In short
As of 8 October 2026Beta shows how strongly a stock tends to react to moves in the overall market. A beta of 1 means it moves like the index. At 1.5 it swings about 50 % more, at 0.5 half as much. Beta is calculated from past prices, so it is no guarantee for the future and only covers market-related risk.
Beta measures how much a stock has moved along with an index in the past. A beta of 1 means it moves like the market on average. At 1.5 it swings about 50 % more; at 0.5 only half as much.
High-beta stocks, such as tech or car makers, often fall much harder in a downturn. Utilities and consumer staples usually have a low beta. Beta is calculated from past prices and is not a forecast. It only captures market risk, not a stock's total volatility.
Example: the DAX falls 2 % in a day. A stock with a beta of 1.5 loses about 3 % on average, one with a beta of 0.5 about 1 %. How to spread such risks is covered in risk and diversification.
As of 8 October 2026 · Educational content, not investment or tax advice.