Beta calcuation
Fundamental / Technical Analysis - Beta calcuation in STRATEGIES & PLANS - hello I am doing my BBM. I was taught beta calculation from test book. I would like to know how ...
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Beta calcuation

  1. Beta calcuation

    hello

    I am doing my BBM. I was taught beta calculation from test book. I would like to know how to do it practically from real data.

    Please guide me. Where do I get the information.

    Regards
    Sriaurobindo


  2. Quote Originally Posted by Sriaurobindo View Post
    hello

    I am doing my BBM. I was taught beta calculation from test book. I would like to know how to do it practically from real data.

    Please guide me. Where do I get the information.

    Regards
    Sriaurobindo
    I am not sure if the Beta data leads to any conclusive and useful decision. Can i know what you are planning to use this data with?

    There are lots of metrics out there. Not all are decisive. Stick to the basic ones. Read my Book if you want to understand the core basics which matter a lot to Stock Investing.







  3. Hi, Sriaurobindo,

    You have to regress market returns against the stock returns to get the beta factor. In simple terms, it is nothing but how much a companies share price has moved as compared to stock market. If stock market raises by 2% whereas the stock price rises by 4% , then the beta of the stock is 2. However it is not a single day observation. You have to plot the movement of stock returns and market returns in a excel , use regression function and find the beta factor. In case of any further queries we shall be able to help better

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