Stock Performance Metrics
Stock Performance Metrics Stock performance metrics are essential for investors to analyze a stock's risk, return, and overall market behavior . D etailed explanations of key metrics are below- 1. Beta: Beta is a measure of a stock’s volatility related to the overall market (typically represented by an index like the S&P 500). It indicates how much a stock’s price is expected to move compared to the market. Interpreting Beta Values - Beta > 1: In case beta is more than one, t he stock is more volatile than the market. If the market moves up or down by 1%, the stock is expected to move by more than 1%. Beta < 1: If beta is less than one, t he stock is less volatile than the market, it means it fluctuates less in response to market movements. Beta = 1: If beta is equal to one, t he stock moves in line with the market. Negative Beta (< 0): In case of beta is negative, t he stock moves in the opposite...