Glossary · Stock basics

Beta

How much a stock tends to move when the whole market moves.

Why it matters

A beta of 1 moves with the market. 1.5 tends to swing 50% more. 0.5 tends to swing half as much. Higher beta means a bumpier ride both ways.

Beta is measured on the past, usually five years of monthly returns, so it can change.

In the Cluenex app, this explanation opens next to every beta figure, with the live reading for the stock you are looking at. Open it in Cluenex