Automation for Calculating Beta || Python
So, if I have to state in very simple words what beta is? Then I will say it like " Beta is a measure of stock's volatility in relation to the overall market " Beta is a concept that measures the expected move in the stock relative to movements in the overall market. The higher the beta is the stock will be more volatile, the lower the beta will be the stock will be less volatile. The formula for calculating beta is the covariance of the return of an asset with the return of the benchmark divided by the variance of the return of the benchmark over a certain period. Where: Covariance = measure of a stock's return relative to that of the market. Variance = Measure of how the market moves relative to its mean Now after all this detailed theory about beta here I will show you how you can calculate it using python and automation. import pandas as pd import numpy as np import os import yfinance as yf from pandas_dat...