What is Beta?
A measure of a stock's volatility relative to the broader market.
In Depth
Beta quantifies how much a stock moves relative to a market index (typically the S&P 500). A beta of 1.0 means the stock moves with the market; 1.5 means 50% more volatile; 0.5 means half as volatile. High-beta stocks amplify market moves in both directions and are typical of growth, tech, and small-cap names.
Example
If the S&P 500 rises 2% and a stock with beta 1.3 rises 2.6%, the stock is performing as expected given its beta.