A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves comparing the stock’s past price movements to market indices.

The beta of the stock refers to the change in return compared to this market average. For example, in 2021, the S&P 500 returned an impressive 27%. But not every stock in the index returned 27% ...

For this reason, beta is said to measure a stock’s “non-systematic” risk, as opposed to the “systematic” risk that every stock has just by virtue of being part of the overall market.

A beta above 1.0, meanwhile, suggests above-market volatility (e.g., the market rises 10% while an individual stock rises 20%). A zero beta suggest no correlation with the market.

The stock has a 24-month Beta of 0.6 and a 5Y beta of 0.66 both of which indicate its lower volatility profile than the overall stock market (On average the stock would tend to move 60% as much as ...