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Glossary ยท investing

What is Beta?

A measure of how much a stock moves relative to the broader market.

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Beta expresses volatility relative to a benchmark, usually the S&P 500. A beta of 1.0 means the stock moves in line with the market on average. A beta of 1.5 suggests it swings roughly 50% more than the market; 0.7 means it moves less.

Beta is backward-looking and only captures one kind of risk. A quiet stock (low beta) can still lose money for other reasons โ€” bad management, industry disruption, fraud. Use beta as one signal among several.

See Beta on a real stock

Open a live page and find this number in context. Educational only โ€” not investment advice.

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Frequently asked questions

Is a low-beta stock safer?

It's less volatile day-to-day, but not necessarily safer. Beta ignores business quality, valuation, and company-specific risk.

What is a negative beta?

A negative beta means the stock tends to move opposite the market. Gold miners and certain hedges sometimes exhibit this behaviour.

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