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Beta Of A Stock Calculator

Work out beta of a stock instantly with clear inputs, formula shown and shareable results.

About Beta Of A Stock Calculator

Beta is the correlation with the market scaled by the ratio of volatilities, measuring how much a stock moves for a given market move. R-squared then shows how much of its total risk is market-driven and how much is diversifiable stock-specific risk.

Formula

Beta

β = ρ × σ_stock / σ_market; R² = ρ²

ρ
Correlation
σ
Volatility

Worked example

With the default values below, Beta Of A Stock Calculator returns Beta of 1.1556. Change any input above and every figure here is recalculated in your browser.

Inputs used

Stock Volatilityaccepts 1–200 %
32 %
Market Volatilityaccepts 1–100 %
18 %
Correlation With The Marketaccepts -1–1
0.65

Results

Beta
1.1556
Share Of Risk Explained By The Market
42.25%
Systematic Volatility
20.800%
Stock-Specific Volatility
24.318%

Step by step

  1. 1Values used
  2. 2Beta
  3. 3Beta= 1.1556
  4. 4Share Of Risk Explained By The Market= 42.25
  5. 5Systematic Volatility= 20.800
  6. 6Stock-Specific Volatility= 24.318

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

What does a beta above one mean?

The stock amplifies market moves — a beta of 1.2 implies roughly a 12% move for a 10% market move.

Is beta stable over time?

Not very. It shifts with leverage, business mix and the estimation window, so treat any single figure as approximate.

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