GlossaryTerm
C

Glossary

Beta

Contextual — situational lens

What it measures

How jumpy the stock is vs the market. Over 1 = bigger swings, under 1 = calmer.

Formula

Cov(stock, market) / Var(market)

Benchmark

1.0 = same as S&P 500

Related metrics

Source

Sharpe, Capital Asset Prices (1964)