Thoughts on Beta

There are some interesting posts about beta on Investopedia, which made me take a little deeper dive into the subject area.  When I think about what beta is and means, I took the following from the Beta: Gauging Price Fluctuations post:

“Beta measures a stock’s volatility – the degree to which its price fluctuates in relation to the overall market. In other words, it gives a sense of the stock’s market risk compared to the greater market. Beta is used also to compare a stock’s market risk to that of other stocks.”

I then played around with the Beta Calculator, and had the following thoughts / observations:

Know how it is calculated

Take a look at the following 3 charts:

IBMDaily

IBMWeekly

IBMMonthly

(Click the images to enlarge them) Continue reading Thoughts on Beta

SMF Add-in

One of the most useful things that I have found and used when creating my workbooks is something called the SMF Add-in.  This is a free Excel Add-in that allows you to easily access content from the web.  Within it are functions that let you pull down csv data, text delimited data, as well as data scraped from various web sites.  Additionally, if the data you are interested in is not already “defined” through the add in, you also have the tools to define your own scraping rules. Continue reading SMF Add-in