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Stock Beta from Covariance and Variance Calculator

β = Cov(R_stock, R_market) / Var(R_market).

Compute a stock's beta directly from the covariance of its returns with market returns and the variance of the market: β = Cov(R_s, R_m) / Var(R_m). β > 1 means amplified market sensitivity; β < 1 means damped.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

β = Cov(R_s, R_m) / Var(R_m)

In depth

Compute a stock's beta directly from the covariance of its returns with market returns and the variance of the market: β = Cov(R_s, R_m) / Var(R_m). β > 1 means amplified market sensitivity; β < 1 means damped.