Beta
A measure of how much a stock moves relative to the overall market — a beta of 1.5 tends to swing 50% more than the index.
Beta compares a stock's volatility to a benchmark like the S&P 500. A beta of 1 moves with the market; above 1 amplifies its moves (high-beta growth and momentum names); below 1 dampens them (defensive, low-volatility stocks). A negative beta moves opposite the market.
High-beta stocks lead in rallies and fall hardest in selloffs, so beta is a quick read on how aggressive a name is. It's a statistical average, though — it doesn't capture stock-specific catalysts like earnings.
On StockSetups
Beta is among the fundamentals on each StockSetups dossier and a screener field, so you can lean into high-beta names in a strong tape or filter them out in a shaky one.
Related terms
See beta on tonight's board.
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