10 Apr 2024 7:14 pm
Beta is a measure of how closely a stock follows the market. Anything greater then 1 means it moves outside the swings of the market as a whole. In other words, a 6.3 means that it is very volatile and moving way outside the bounds of the index or the stock market numbers you see every night on the news. Therefore, it is a very risky stock. Alpha on the other hand is what you are searching for, how much it outperforms the market as a whole.
Nothing is easier than defending the status quo.