How Does Beta Work? | Beta In Stocks Explained
40.4 هزار بار بازدید -
3 سال پیش
-
How does beta work in
How does beta work in stocks? In this video, you’ll learn what beta is, how it works in the stock market, and how you can use it to your advantage! This is a simply explained video covering all the basics to help you better understand beta!
Beta is a measure of how volatile the stock is in comparison to the market average. To find beta, statistics of the stock are run to understand the correlation between the stock and a market index. The most popular index used to benchmark against is the S&P 500.
Stocks with a beta of 1 have a perfect correlation with the stock market. Meaning that any changes in the market index will be exactly the same as the changes in the specific stock. If a stock has a beta greater than 1, the changes in the stock are greater than the changes in the market. Inversely, stocks with a beta of less than 1 mean they are less sensitive and will have smaller moves than the index.
Assets can also have a beta of 0, and even a negative beta. 0 beta assets means there is no correlation between the asset and the market index. Examples of this are cash and Bitcoin.
Finally, negative beta assets means that there is an inverse relationship between the asset and the market. When the market is up, the negative beta asset is down, and vise versa. Gold is a common example of a negative beta asset.
The video is part of the Stock Market Basics playlist.
🔔 Subscribe for more videos! @rynance
🕒 Time Stamps!
00:00 Intro
00:25 Beta Explained
01:10 How Does Beta Work?
02:25 0 Beta Assets
03:00 Negative Beta Assets
03:30 Home Depot Example
04:05 Apple Example
04:38 Thanks For Watching!
💻 Check out the 'Stock Market Basics' Playlist for more videos like this!
💬 Drop me a comment if you have a question!
👍 Smash like for the YouTube algorithm!
Disclaimer
This channel is for entertainment purposes only and is not investment advice. All videos published on this channel are informational in nature and are not intended to give advice or recommendations about any particular security or investment. Before making any investment decisions, I would recommend you to speak to a financial professional that is qualified to provide advice.
Beta is a measure of how volatile the stock is in comparison to the market average. To find beta, statistics of the stock are run to understand the correlation between the stock and a market index. The most popular index used to benchmark against is the S&P 500.
Stocks with a beta of 1 have a perfect correlation with the stock market. Meaning that any changes in the market index will be exactly the same as the changes in the specific stock. If a stock has a beta greater than 1, the changes in the stock are greater than the changes in the market. Inversely, stocks with a beta of less than 1 mean they are less sensitive and will have smaller moves than the index.
Assets can also have a beta of 0, and even a negative beta. 0 beta assets means there is no correlation between the asset and the market index. Examples of this are cash and Bitcoin.
Finally, negative beta assets means that there is an inverse relationship between the asset and the market. When the market is up, the negative beta asset is down, and vise versa. Gold is a common example of a negative beta asset.
The video is part of the Stock Market Basics playlist.
🔔 Subscribe for more videos! @rynance
🕒 Time Stamps!
00:00 Intro
00:25 Beta Explained
01:10 How Does Beta Work?
02:25 0 Beta Assets
03:00 Negative Beta Assets
03:30 Home Depot Example
04:05 Apple Example
04:38 Thanks For Watching!
💻 Check out the 'Stock Market Basics' Playlist for more videos like this!
💬 Drop me a comment if you have a question!
👍 Smash like for the YouTube algorithm!
Disclaimer
This channel is for entertainment purposes only and is not investment advice. All videos published on this channel are informational in nature and are not intended to give advice or recommendations about any particular security or investment. Before making any investment decisions, I would recommend you to speak to a financial professional that is qualified to provide advice.
3 سال پیش
در تاریخ 1400/01/11 منتشر شده
است.
40,446
بـار بازدید شده