What Beta Measures

Beta measures how much a stock tends to move when the market moves. Here is how to read it, real betas for well-known stocks over the past year and why beta can change.

Sensitivity to the market

A beta of 1 means a stock has tended to move in line with the market. A beta of 2 means it has tended to move about twice as much: up 2% on a day the market rises 1%, on average. A beta below 1 means smaller moves. A negative beta means it tended to move opposite to the market.

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