Beta Coefficient A means of measuring the volatility of a security or portfolio of securities in comparison with the market as a whole.
Beta is calculated using regression analysis.
A beta of 1 indicates that the security's price will move with the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. A beta less than 1 means that it will be less volatile than the market. Many Utilities stocks have a beta of less than 1. The Beta is a good indicator of how risky a stock is.