Calculating stock beta using Excel

[@anthony90123]

Jesus Christ I was having trouble doing my finance project and i cant tell u how much your video has helped me !! THANKS A LOT U ARE A GOOD MAN HAHA :)

[@rangjungyeshe]

Nice demo - thanks v much. I was initially surprised by the way you worked out the ratios, until I realised that the most recent dates are at the TOP of the sheet (Doh !)

[@wHisperis001]

Just use the =SLOPE(price of stock set, index set) function

[@wHisperis001]

@@neilcarvalho8349 wish i could, i dont even remember this comment lol. Just google excel slope function.

[@pholmes411]

Very helpful and informative video. Thanks so much for a really well done explanation.

[@TheRaynman]

my guy you just helped me so much. You LOVE to see it

[@salmamiftah26]

Thank you so much, you saved my semester !!!

[@AndersExcel]

Why not use COVARIANCE.S and VAR.S instead of .P (its a sample)?

[@ankitkanojia1]

Thanks for the video sir.. I was looking for it desperately

[@KrishnaDas-nc5dq]

That was really helpful

[@ddcupload7373]

bro 11 year video saved me in 2023 thank you.

[@frmabhijit]

Nice explanation

[@siddiquipetroleum]

Very helpful thanks for taking time to post this.

[@aabyevolve5159]

ty for such helpful nd clear videos... i appreciate👍

[@Rennienan]

Excellent, helped with a small project I am working on.

[@sudeepmahato1131]

Awesome...thank u very much for sharing the video..

[@lauraliao8565]

thank you very much. Your video is really helpful!!!

[@tomascroft4400]

Very helpful. Thanks for taking the time to do this.

[@rick1995]

Still very helpful in 2018. Thanks a lot, sir!

[@CehikalGalih]

JUST WHAT I NEED.. THANKS !

[@grenillle0009]

Thank you very much for your video....it solved a lot of my queries

[@rizasafiranurulita9612]

Wow, that's so simple... Thanks

[@dhanushgowda7269]

Very much useful sir. Thank you🙏🙏🙏

[@TalhaBedir]

that SLOPE function is cool!

[@ffesat]

Crystal Clear! Thanks mate.

[@TonyQTNguyen]

Thank you for your video sir!

[@kimnorth7060]

Apologies Robert one last question, how would you treat the formula if the previous price was zero? Dividing by zero is not possible

[@gualan1642]

yes, the slope function is easier to undertand, i still dont under the covariance , but thank you so much

[@karlweber682]

Great video! Thanks.

[@uroojfatima763]

Really clear

[@megera19]

Thanks for posting! This was super helpful :-)

[@hoangyennguyen7133]

Very useful. Thank you very much

[@maninderjitsingh2958]

When we are going to find the return of close price over the recent days. Why do we have to take the logarithm like: type in ln(close price day 2/close price day 1). But here you are just simply dividing it. Do someone have an explanation?

[@jameslam1318]

thank you very much sir

[@kennethrobertson5670]

You my friend are a life saver. Thank You

[@Nader95]

take LN (today / yesterday) for returns. LN stands for Natural Log

[@MsMegasharon]

thanks. very useful for me that i have to do my project.

[@Jevuify]

Very helpful

[@MsMegasharon]

I should say better than others since was in detail. non of the other videos start from how to get s&p 500. thankssss

[@Sosojuju]

Thank you so much

[@omegatheo]

What you have just computed is the beta for weekly returns. How do you compute it for monthly, quarterly , semi-annually or yearly returns when you have weekly data?

[@Raleon96]

just download different data lol

[@SIVANAND1000]

thank you.... really useful

[@Grace-en9zu]

Thanks a lot!

[@JoshMolina]

Great explanation! Thank you.

[@sharmisthadeysarkar2976]

Helped 😊

[@XXTimayoXX]

hello first of all i want to thank you for this video my question is : in order to calculate the return why you have to (-1) ? thank you

[@vichare1maratha]

Hi, to calculate return ...original formula is ( latest price - previous price) / previous price. when presenter has used latest price/previous price - 1 ..it means the same if you solve this equation cross multiply and bring common denominator.

[@simfinso858]

Shortcut for percentage calculations

[@23Firejet]

Hey just a short question since im new to this, what is the reason again for using 2 stock companies for computation?

[@Kopities]

Beta is to see if the stock of the company you are valuing moves with the stock trading trends. in this case, amazon is the stock that you are valuing, and the reference point to compare to the stock trending is the S&P 500.

[@ritadawoud9549]

Thank you so much, very helpful :)

[@MrFuckwolfs]

Thank you very much! You are a great teacher))

[@shrutijain1998]

how did you calculate the returns? i mean what is that formula used? it is similar to calculating CAGR. Can you please explain why you used that formula?

[@JK-pm7qw]

very clearly explained! thanks.

[@KyotoPeter]

Thanks

[@aleshiababbe8302]

Great tutorial!

[@arvindananthakrishnan3139]

Awesome...thanks for the help...

[@VariableYoung]

Thank U very Much！！！ My question is what is the difference between Beta & Sharp Ration?

[@justinkinzer2274]

Thanks! Clear and helpful!

[@axellibero]

really well-explained and useful, thanks!!

[@oneemajena6542]

Really Helpful.. Thank you

[@rhui8136]

Thank you very much!!

[@theicymistybreeze]

Very informative and helpful. Thank you very much!! :)

[@Rshushowpe]

thank you！

[@tonydacunto8713]

Thank you, that was just perfect!

[@abhi361degree8]

Thank you for your Information

[@hussainmani9439]

Excellent sir

[@paulgiles9637]

thanks for this; do you need to involve a risk-free rate?

[@fadjarutomo2850]

thank you for this video

[@MyCrystalxx]

Thank you so much, but i am just wondering what is the best time period we need to chose for calculate beta, is that 10 years?

[@Corrieses]

This is incorrect, you should use EXCESS market returns and EXCESS stock returns - corrected for the risk free rate.

[@ST-wx6vw]

Excess Return relative to a benchmark is Alpha not Beta. This video is about Beta. Video appears correct to me.

[@ddanieldunn]

​@@ST-wx6vw I think Corrieses is correct. Expected Return = Risk Free Rate + β(Return on Market - Risk Free Rate) therefore: Er - Rf = β(Rm - Rf) y value used is expected return, x value is market risk premium, value found will be Beta. But if you don't take away risk free rate then the Beta should be wrong. But I may not be correct.

[@asmrthings2020]

very useful...thanks

[@kimnorth7060]

thanks Kim, How about expected return? How would you calculate that? I want to determine whether a security is overpriced or not

[@raiyanahmed5925]

Thx...totally hlpful...

[@MoleCoolOfficial]

This video help me out, thank you so much! :D

[@yamelyscollura6393]

Hi, How about if you are asked to find the stock beta for just S&P 500. How would you do this?

[@kimnorth7060]

can i use returns as percentages from one close to another rather than as fractions in this formula?

[@srishtykapoor3941]

For example if we need to find out beta as for today, can we use the date from like 1997 till 2018? Won’t this reduce our standard errors??

[@DianPermata93]

thank you :)

[@MultiSaachin]

How to find a stock which is giving me max return in which month and in which year consistent where i have 20 years of data .... can some one help me out ....

[@saminaburhani4697]

very helpful!

[@safiya7693]

hi, if i need to find the required rate of return on a ftse 350 company of my choice, so i use the s&p 500 historical prices on yahoo like you did or do I use the ftse 350 historical prices? thanks!

[@jobvizcarra7638]

Awesome! thank you!!!

[@kimnorth7060]

Thanks Robert, it turned out that the shares did not start trading until a later date, using the example above if amazon had less days worth of closing prices and i was using linear regression slope to calculate the beta, from my understanding both x and y for the calculation of a slope must be of equal size. In my scenario would if be valid if i used the smallest size to calculate the slope?

[@Nader95]

shouldn't you take the log return?

[@kimnorth7060]

i have a question, can i use the following formula to calculate the returns : 100 - ((previousPrice/currentPrice) * 100) ?

[@aiyanagayle]

@2:55 how are you selecting the array from the cell you are on?

[@gshreekant1411]

useful video.....thanks

[@mikemorgan3938]

Thanks alot sir I really do appreciate your help with this video I started off in this market not seeing the results I expected and not understanding why but ever since I started investing and trading with Mr Romero pieto I now understand and know the true worth of having an expert by your side .

[@vincentbrown6818]

His trade execution quality and profiting is well structured with great financial features.

[@roddiehouston8834]

Apparently this is one of the most gifted trader around,I have only been with him for 3 months now and I have learnt so much about his trading skills.

[@pamelawalker8278]

Good good content.

[@mariahclaire1256]

Am so happy seeing all this good good content about the man behind my successful tradings Mr Romero pieto.

[@horsefallaron9009]

Vincent brown am from Canada 🇨🇦 does Mr Romero pieto accepts New investors or students ?

[@fadjarutomo2850]

very helpful

[@kakradexter1]

is the S & P 500 prices the average prices of all the stock that make up the S & P 500?

[@sanahana9776]

Thanks - anyone able to explain how to calculate alpha on excel using share prices??? really in need of some help! thanks again

[@user-jr6nf7it8o]

thank you !

[@mbminhas08]

my beta is coming as 20, is that right? I followed your steps, but I feel the beta is not accurate.

[@thomast5359]

Good

[@Paata02]

great thank you so much

[@murthalashafiul3648]

Thanks for help mind

[@T4ss3]

Hello sir, When I download VESTAS' stock history data, I receive it in Danish currency. I want to know whether you can download it in euros? Also the S&P 500 is in $. I am interested in getting it in euros too.. do you know a website where I can download it that currency? And yea finally when I downloaded the sheet from yahoo finance, all the data was in the same column, so I had to separate it all manually, do you know the reason for why that happens? Look forward to hear from you, thx! :)

[@jasonrodway7440]

Thanks yow

[@js-hk6xs]

when i divide c3/c4 i get a red c4 telling me its a error why is this?

[@alihamza-tt3uu]

My return are not in percetage after calculation

[@yuhaoyang2830]

May I ask why you didn't use the excess return to calculate beta? My lecturer taught us to calculate the beta based upon the excess return rather than return.

[@sherip008]

they'll be the same

[@salsa4umoudrik141]

hi, I would like to know where to find the beta caracter in excel please?

[@tucopelaezeichentopf4535]

WELL DONE THANKS A LOT THA HEPS ME