Beta

Beta measures how much a stock moves relative to the market as a whole. A beta of 1 means the stock tends to move in line with the index; above 1 it amplifies both rises and falls; below 1 it dampens them. It is the parameter that translates market risk in the CAPM, and it is computed from historical data, so it describes the past rather than promising the future.

See the full glossary · What the Celsmar financial terminal is

Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.