OPEN-SOURCE SCRIPT
BETA (against any benchmark index - defaulted to NSE:NIFTY)
Beta value of a stock relative to benchmark index. Thanks to Ricardo Santos for the original script. This script is adapted from it.
To understand beta, refer Investopedia link: investopedia.com/terms/b/beta.asp
A beta value of 1 means the stock is directly correlated to benchmark index - volatility would be same as overall market.
Beta value less than 1 and greater than 0 means the stock is less volatile than the market.
Beta value more than 1 would mean the stock is more volatile than the market.
A beta value of 1.2 would roughly translate to the stock being 20% more volatile than the overall market.
A negative beta value indicates the stock is inversely correlated to market.
In the example chart, you can see the Beta value change in NSE:RELIANCE with respect to NSE:NIFTY.
To understand beta, refer Investopedia link: investopedia.com/terms/b/beta.asp
A beta value of 1 means the stock is directly correlated to benchmark index - volatility would be same as overall market.
Beta value less than 1 and greater than 0 means the stock is less volatile than the market.
Beta value more than 1 would mean the stock is more volatile than the market.
A beta value of 1.2 would roughly translate to the stock being 20% more volatile than the overall market.
A negative beta value indicates the stock is inversely correlated to market.
In the example chart, you can see the Beta value change in NSE:RELIANCE with respect to NSE:NIFTY.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.