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Thread: Do you ever consider the Beta of a Stock before you invest?
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Old 10-03-2006, 07:11 PM
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This member is the original thread starter. Do you ever consider the Beta of a Stock before you invest?
I have looked at many different elements to trading, but one which I have not seen mentioned on the Forum is Stock Betas.

The beta of a stock is the correlation the stock has with the market (or any other method of comparison, e.g. interest rates, etc). A strict definition of correlation is :-

A correlation is a single number that describes the degree of relationship between two variables

A beta is not a fixed number, and is based on historical data which will change going forward.

I am going to leave the rest fairly blank, as I always think it is interesting to hear peoples views, without leading them in a certain direction.

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