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Beta The beta number describes how the expected return of a stock or portfolio is correlated to the return of the financial market as a whole.Beta shows the magnitude of a portfolio's past share-price fluctuations in relation to the ups and downs of the overall market. An asset with a beta of 0 means that its price is not at all correlated with the market. A positive beta means that the asset generally follows the market. A negative beta shows that the asset inversely follows the market. The market has a beta of 1.00, so a portfolio with a beta of 1.50 would have seen its share price rise or fall by 15% when the overall market rose or fell by 15%. |
