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Beta 3 months ago #2426

  • jedgar
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I know what Beta is, I'm just checking what Beta is on this site.

Found this definition in the tutorials...

Beta
Beta is a measure of a company's common stock price volatility relative to the market. Reuters Beta is the slope of the 60 month regression line of the percentage price change of the stock relative to the percentage price change of the local index. Beta values are not calculated if less than 40 months of pricing is available.

Somebody asked on the Reuters.com site what method they used, and a staff member posted:
"The beta displayed on Reuters.com is calculated based on trailing 5-year prices, on a monthly basis, relative to the S&P 500."

I found the answer interesting, as you can look at global stocks on that site.

So I just want to confirm or double check - could you let me know that reuters data (used by this site) does in fact calculate Beta from LOCAL indices?

Is there a list somewhere of what they use (e.g. what index for German stocks, UK stocks, Japanese stocks etc?) I'm assuming it would be the 'main' index in each country.

Thank you
Jason

Re: Beta 3 months ago #2427

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Jason,

According to our Beta definition:

"Beta is a measure of a company's common stock price volatility relative to the market. Reuters Beta is the slope of the 60 month regression line of the percentage price change of the stock relative to the percentage price change of the local index. Beta values are not calculated if less than 40 months of pricing is available."

So, it appears that local indexes are used for the global beta calculations. Unfortunately, we do not have a listing or association of which indexes are used in each market.

Thanks,
Lenny Grover
Founder/CEO
FinToolbox/Screener.co
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