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Beta calculator
Beta calculator
Enter your values below and press Calculate to see your result instantly.
Format: PortReturn, BenchReturn (per line)
Systematic Risk (Beta)
1.28
AGGRESSIVE
R-SQUARED (FIT)
0.94
Your portfolio moves 28% more than the benchmark. High leverage implied.
About the Beta calculator
Beta measures how sensitive an investment is to market movements. A beta of 1 moves with the market, above 1 moves more and below 1 moves less.
How to use the Beta calculator
- Enter 8 to 12 historical return pairs of the portfolio and the benchmark for the same periods.
- Press Calculate Sensitivity to see beta.
Formula and method
Ξ² = Covariance(Rp, Rm) Γ· Variance(Rm)
Tips
- Use the same time periods (for example monthly returns) for both series.
- More data points give a more reliable beta.
- A negative beta means the asset tends to move opposite to the market.
Frequently Asked Questions
There is no good or bad beta. Higher beta means higher risk and potential return, and lower beta means a steadier ride.