What Does Beta Mean in Stocks

How do you calculate beta of stock? Calculate the beta of a stock by dividing the covariance of all percentage change values ​​for both the stock and the index by the variance of the percentage change values ​​for stocks only.

What would be considered a high beta on a stock?

Simply put, a high beta stock is one that has been much more volatile than the index it is measured against. A stock with a beta greater than 2, meaning the stock generally moves twice as much as the market, is generally considered a high beta stock.

What stock has the highest beta?

As noted below, Genworth Financial (NYSE:GNW) is currently the highest beta stock on the S&P 500.