How to Calculate the Beta Coefficient for a Single Stock

Calculating volatility to structure your investing strategy.

A stock's beta coefficient is a measure of its volatility over time compared to a market benchmark. A beta
of 1 means that a stock's volatility matches up exactly with the markets. A higher beta indicates great
volatility, and a lower beta indicates less volatility.

Calculating beta for a given stock is not too difficult, despite the intimidating jargon. To calculate it, all you
need is some market data over a period of time and a spreadsheet program.

In the first column, insert the date range to be used to calculate the beta. In the second
1
column add the corresponding closing price data for the stock in question, and in column
three, insert the closing level for the index you will be using.

Next, we need to calculate the daily price change for both the stock and index as a
2
percentage. To do that, subtract the more current price from the previous day's, then divide
by the previous day's price. Multiply by 100 to show the result as a percentage.

we'll compare how the stock and the index move relative to each other with a covariance
formula and then divide that result by the variance of the index alone. In non-math terms,
3 we're going to compare how the stock and index move together relative to how the index
moves by itself. The result is the beta.

Date IIKP Closing Price IIKP Daily % Change ISHG Closing Price
26-Feb-19 214 3.88% 6,540.95
25-Feb-19 206 0.00% 6,525.36
22-Feb-19 206 -1.90% 6,501.38
21-Feb-19 210 0.00% 6,537.77
20-Feb-19 210 -5.41% 6,512.78
19-Feb-19 222 7.77% 6,494.67
18-Feb-19 206 1.98% 6,497.81
15-Feb-19 202 0.00% 6,389.09
14-Feb-19 202 -3.81% 6,420.02
13-Feb-19 210 1.94% 6,419.12
12-Feb-19 206 -1.90% 6,426.32
11-Feb-19 210 0.96% 6,495.00
8-Feb-19 208 -4.59% 6,521.66
7-Feb-19 218 -3.54% 6,536.46
6-Feb-19 226 5.61% 6,547.88
4-Feb-19 214 -4.46% 6,481.45
1-Feb-19 224 -3.45% 6,538.64
31-Jan-19 232 2.65% 6,532.97
30-Jan-19 226 -3.42% 6,464.19
29-Jan-19 234 -3.31% 6,436.48
28-Jan-19 242 -1.63% 6,458.71
25-Jan-19 246 -0.81% 6,482.84
24-Jan-19 248 0.81% 6,466.65
23-Jan-19 246 7.89% 6,451.17
22-Jan-19 228 0.88% 6,468.56
21-Jan-19 226 -4.24% 6,450.83
18-Jan-19 236 -1.67% 6,448.16
17-Jan-19 240 3.45% 6,423.78
16-Jan-19 232 -0.85% 6,413.36
15-Jan-19 234 0.00% 6,408.78
14-Jan-19 234 -1.68% 6,336.12
11-Jan-19 238 12.26% 6,361.47
10-Jan-19 212 1.92% 6,328.71
9-Jan-19 208 0.97% 6,272.24
8-Jan-19 206 -1.90% 6,262.85
7-Jan-19 210 0.00% 6,287.22
4-Jan-19 210 1.94% 6,274.54
3-Jan-19 206 1.98% 6,221.01
2-Jan-19 202 6,181.18

Beta= 2.25
Stock

a market benchmark. A beta

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the beta. In the second

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ISHG Daily % Change

0.24%
0.37%
-0.56%
0.38%
0.28%
-0.05%
1.70%
-0.48%
0.01%
-0.11%
-1.06%
-0.41%
-0.23%
-0.17%
1.02%
-0.87%
0.09%
1.06%
0.43%
-0.34%
-0.37%
0.25%
0.24%
-0.27%
0.27%
0.04%
0.38%
0.16%
0.07%
1.15%
-0.40%
0.52%
0.90%
0.15%
-0.39%
0.20%
0.86%
0.64%
Date Price Open High Low Change %
26-Feb-19 6,540.95 6,527.72 6,540.95 6,497.76 0.24%
25-Feb-19 6,525.36 6,522.31 6,538.49 6,507.93 0.37%
22-Feb-19 6,501.38 6,518.19 6,530.22 6,481.48 -0.56%
21-Feb-19 6,537.77 6,510.57 6,539.07 6,498.99 0.38%
20-Feb-19 6,512.78 6,521.81 6,552.15 6,483.07 0.28%
19-Feb-19 6,494.67 6,500.70 6,534.01 6,493.31 -0.05%
18-Feb-19 6,497.81 6,428.28 6,501.03 6,425.92 1.70%
15-Feb-19 6,389.09 6,425.81 6,433.69 6,374.90 -0.48%
14-Feb-19 6,420.02 6,429.13 6,446.34 6,402.43 0.01%
13-Feb-19 6,419.12 6,445.18 6,456.57 6,398.89 -0.11%
12-Feb-19 6,426.32 6,503.05 6,513.10 6,392.24 -1.06%
11-Feb-19 6,495.00 6,523.70 6,535.18 6,494.12 -0.41%
8-Feb-19 6,521.66 6,513.74 6,526.87 6,498.97 -0.23%
7-Feb-19 6,536.46 6,556.11 6,563.98 6,517.23 -0.17%
6-Feb-19 6,547.88 6,503.58 6,552.22 6,503.58 1.02%
4-Feb-19 6,481.45 6,540.77 6,555.99 6,479.05 -0.87%
1-Feb-19 6,538.64 6,552.06 6,581.73 6,516.44 0.09%
31-Jan-19 6,532.97 6,491.39 6,544.48 6,491.39 1.06%
30-Jan-19 6,464.19 6,445.41 6,464.93 6,435.42 0.43%
29-Jan-19 6,436.48 6,454.47 6,485.25 6,428.47 -0.34%
28-Jan-19 6,458.71 6,488.90 6,501.09 6,433.82 -0.37%
25-Jan-19 6,482.84 6,474.16 6,498.33 6,470.12 0.25%
24-Jan-19 6,466.65 6,451.26 6,478.88 6,446.58 0.24%
23-Jan-19 6,451.17 6,452.91 6,484.20 6,449.92 -0.27%
22-Jan-19 6,468.56 6,452.60 6,468.56 6,416.59 0.27%
21-Jan-19 6,450.83 6,448.54 6,472.15 6,438.90 0.04%
18-Jan-19 6,448.16 6,444.21 6,452.56 6,409.10 0.38%
17-Jan-19 6,423.78 6,421.41 6,457.73 6,410.95 0.16%
16-Jan-19 6,413.36 6,417.13 6,425.94 6,385.59 0.07%
15-Jan-19 6,408.78 6,347.10 6,408.78 6,333.64 1.15%
14-Jan-19 6,336.12 6,351.33 6,359.88 6,302.40 -0.40%
11-Jan-19 6,361.47 6,347.97 6,361.47 6,337.55 0.52%
10-Jan-19 6,328.71 6,293.96 6,328.71 6,268.51 0.90%
9-Jan-19 6,272.24 6,296.11 6,311.58 6,265.33 0.15%
8-Jan-19 6,262.85 6,292.26 6,316.24 6,251.38 -0.39%
7-Jan-19 6,287.22 6,317.63 6,354.76 6,287.22 0.20%
4-Jan-19 6,274.54 6,211.10 6,274.54 6,200.85 0.86%
3-Jan-19 6,221.01 6,176.15 6,221.01 6,176.15 0.64%
2-Jan-19 6,181.18 6,197.87 6,205.90 6,164.83 -0.22%
Date Price Open High Low Change %
26-Feb-19 214 206 218 206 3.88%
25-Feb-19 206 208 208 204 0.00%
22-Feb-19 206 210 212 204 -1.90%
21-Feb-19 210 212 212 202 0.00%
20-Feb-19 210 222 226 210 -5.41%
19-Feb-19 222 206 222 206 7.77%
18-Feb-19 206 202 208 199 1.98%
15-Feb-19 202 202 204 199 0.00%
14-Feb-19 202 210 212 202 -3.81%
13-Feb-19 210 208 212 204 1.94%
12-Feb-19 206 210 212 204 -1.90%
11-Feb-19 210 210 214 206 0.96%
8-Feb-19 208 218 218 204 -4.59%
7-Feb-19 218 228 230 216 -3.54%
6-Feb-19 226 216 226 216 5.61%
4-Feb-19 214 226 226 214 -4.46%
1-Feb-19 224 234 234 222 -3.45%
31-Jan-19 232 228 240 228 2.65%
30-Jan-19 226 234 238 222 -3.42%
29-Jan-19 234 242 242 226 -3.31%
28-Jan-19 242 246 250 238 -1.63%
25-Jan-19 246 250 264 246 -0.81%
24-Jan-19 248 248 302 246 0.81%
23-Jan-19 246 226 246 226 7.89%
22-Jan-19 228 226 230 224 0.88%
21-Jan-19 226 236 238 222 -4.24%
18-Jan-19 236 240 246 236 -1.67%
17-Jan-19 240 232 240 230 3.45%
16-Jan-19 232 234 238 226 -0.85%
15-Jan-19 234 234 238 222 0.00%
14-Jan-19 234 238 240 216 -1.68%
11-Jan-19 238 212 240 212 12.26%
10-Jan-19 212 210 214 206 1.92%
9-Jan-19 208 206 210 206 0.97%
8-Jan-19 206 210 214 204 -1.90%
7-Jan-19 210 210 218 208 0.00%
4-Jan-19 210 206 216 204 1.94%
3-Jan-19 206 202 206 198 1.98%
2-Jan-19 202 236 240 202 -15.83%