Beginners Guide - The BETA Of SENSEX Scrips in NEW TO TRADING & INVESTMENTS? - Beta measures the sensitivity of a scrips Price movement relative to movement in the SENSEX. Statistically Beta is defined as ...
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08-25-2011 10:43 PM
The BETA Of SENSEX Scrips
Beta measures the sensitivity of a scrips Price movement relative to movement in the SENSEX. Statistically Beta is defined as below:
Beta = Covariance [ (SENSEX, Stock) / Variance (SENSEX) ].
Beta is also calculated by regressing stock returns with the index returns. The regression coefficient thus calculated is the Beta value.
Note: Covariance and variance are calculated from the Daily Returns data of the SENSEX and SENSEX scrips
Source: bseindia
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