We use cookies and web-analytics to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the website. For more information please see our Data Protection Policy. Link Data Protection Policy to http://www.erste-am.at/en/Privacy.

The beta factor complements volatility. It, too, indicates the potential of share prices to fluctuate. The beta factor is a risk factor that expresses the dynamics of a share, i.e. the velocity at which it experiences fluctuations in comparison with other shares. The beta factor is calculated from historical data on the basis of statistical methods. A beta of 1 is defined as a share price development that is exactly in line with the index. If the price fluctuations of a share is more pronounced than those of the index, the beta will exceed 1. A beta of less than 1 means that the fluctuations of a share are generally less significant than those of the index.

Visit Erste Asset Management

Latest Posts

Turkish economy caught between recovery and conflicts

The Turkish invasion in northern Syria and the conflict surrounding it...

Changes in mobility

Whereas in previous decades the development in the car industry had almost...

Changes to the investment universe, September 2019 – November 2019

Admitted PowerCell Sweden AB (sector: Electrical Components & Equipment),...

For YOU INVEST clients