Key Platforms for Finding Beta

Beta Comparison Examples

Company Sector Beta Risk Profile Real-World Implication
Xcel Energy Utilities 0.27 Very low volatility, stable If market falls 10%, XEL might only fall 2.7%
Kraft Heinz Food Manufacturing 1.14 Slightly more volatile than market If market rises 5%, KHC might rise about 5.7%
Amazon E-commerce/Tech 1.13 Moderately higher volatility During market correction of 8%, AMZN might drop about 9%
Tesla Electric Vehicles 2.03 High volatility, amplifies market moves In bull market gaining 15%, TSLA could surge over 30%

Understanding Beta Values

Beta < 1.0

Less volatile than the market

Example: Xcel Energy (0.27)

  • More stable price movements
  • May offer dividends (XEL offers ~3% yield)
  • Less dramatic losses during downturns
  • Typically lower growth potential

Real scenario: During the March 2020 market crash, while the S&P 500 fell approximately 30%, utility stocks like XEL typically fell less dramatically.

Beta = 1.0

Moves with the market

Example: Many index ETFs like SPY (S&P 500 ETF)

  • Rises and falls at the same rate as the market
  • Moderate risk and potential reward

Real scenario: If the overall market rises 7% in a quarter, a stock with beta of 1.0 would be expected to rise about 7% as well.

Beta > 1.0

More volatile than the market

Example: Tesla (2.03)

  • Amplifies market movements
  • Higher potential returns
  • Greater potential losses
  • Better suited for risk-tolerant investors

Real scenario: During the 2020-2021 bull market, Tesla stock rose over 700% while the S&P 500 gained around 16%, demonstrating high-beta performance.

How to Look Up Beta: Step by Step

  1. On Yahoo Finance:
    • Go to finance.yahoo.com
    • Enter ticker symbol (e.g., "AAPL" for Apple)
    • On the summary page, find "Beta (5Y Monthly)" in the statistics panel
    • Example: AAPL shows a beta of approximately 1.30
  2. On Finviz:
    • Navigate to finviz.com
    • Type the ticker in the search box
    • Scroll below the chart to find fundamental data
    • Look for "Beta" in the displayed metrics
    • Example: For Microsoft (MSFT), you'll find beta around 0.90
  3. Using Investing.com:
    • Visit investing.com
    • Search for your stock
    • Navigate to the company profile or overview section
    • Locate beta in the technical statistics
    • Example: For international stocks like Toyota (TM), you can find beta approximately 0.60

Additional Risk Metrics on Finviz

Average True Range (ATR)

Measures stock price volatility by calculating average price range over a period (typically 14 days)

Examples:

  • Xcel Energy: ATR of 1.46 (lower dollar volatility)
  • Tesla: ATR of 38 (high dollar volatility, partly due to higher share price)

Practical use: Higher ATR stocks require wider stop-loss placements for traders

Volatility Percentage

Finviz-specific metric showing price variability

Examples:

  • Xcel Energy: 2.4% volatility
  • Kraft Heinz: 4% volatility
  • Tesla: Significantly higher percentage

Note: This metric is unique to Finviz and not as widely used as beta

Practical Applications

Portfolio Construction

Example: An investor nearing retirement might build a portfolio with predominantly low-beta stocks like Xcel Energy (0.27) to reduce volatility, while allocating only a small portion to higher-beta stocks like Tesla (2.03).

Market Timing Strategy

Example: During a bull market, an aggressive investor might overweight high-beta stocks like Tesla to potentially outperform the market, then switch to low-beta defensive stocks like utilities when they believe a market correction is coming.

Risk Management

Example: An investor with $100,000 might allocate $70,000 to stocks with betas under 1.0 (like Amazon at 1.13 or lower) and $30,000 to higher-beta stocks like Tesla, creating a balanced risk profile.