Beta
Definition
A measure of a stock’s volatility relative to the overall market. Beta of 1.0 moves with the market; >1.0 is more volatile; <1.0 is less volatile.
Formula / Rules
$ \beta = \frac{\text{Covariance}(R_i, R_m)}{\text{Variance}(R_m)} $
Example
A stock with beta 1.5 is expected to rise 15% if the market rises 10%. Market Capitalization (Market Cap) Category: Equity Definition: The total dollar market value of a company’s outstanding shares of stock. Calculated as current share price multiplied by
Related Terms
Frequently Asked Question
What is Beta in trading?
A measure of a stock’s volatility relative to the overall market. Beta of 1.0 moves with the market; >1.0 is more volatile; <1.0 is less volatile.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.