Home MarketXLS
Dashboard MarketXLS
Screener MarketXLS
Options Profit Calculator MarketXLS
Stock Ranks MarketXLS
Spreadsheet Builder MarketXLS
Documentation MarketXLS
Logout MarketXLS

Beta Formula In Excel (With Marketxls)

Written by MarketXLS Team on 
Sat Jul 29 2017
 about OthersPortfolio Management
Beta Formula In Excel (With Marketxls) - MarketXLS
Boost your market advantage with MarketXLS. Real-time, enterprise-grade data. Book a demo or subscribe now!
Beta Formula In Excel (With Marketxls) - MarketXLS

This article explains how to use MarketXLS Beta formula in Excel to get stock beta values fast in Excel. What does beta mean, how to interpret it and the concept of negative beta?

Beta for stocks

What beta really tells us is the volatility of a stock. It tells us how large or small is the moment of the stock relative to a neutral level (generally the stock index). Beta does not provide any indication of the trend or the direction of the movement. In simple terms, it means that if you are looking for a stable company whose share price does not move a lot then you want the beta to be as small as possible. And if you’re looking for a company or a stock that moves quite a lot then you are looking for beta which is as high as possible.

So the companies with large beta have the potential to go on upside quicker and vice versa. These stocks may make you make more money but also lose more money a lot quicker than the stocks that have lower beta.

Typically day traders will look for companies with the higher beta so they can gain as much as possible in short period of time.Basically, the market itself has a beta of 1. Stocks that have a higher volatility will have a higher beta. Let’s say that the beta of one stock is 1.2, that means typically this stock is 20% more volatile than the stock market. That’s why generally when the stock market is not doing very good people generally sell off stocks with higher beta and it invests in the stocks with lower beta.

Below are the companies in S&P 500 that have the highest beta values as on 27th July 2017 calculated with the beta formula in excel

high beta

And these are the companies with the lowest Beta values 27th July 2017

low beta


How to calculate beta in Excel – Beta formula in Excel

To calculate Beta, calculate the slope of series of returns of the stock and of the index. Excel provides a formula =Slope(Series1, Series2) to do that. However, MarketXLS exposes the function called =Beta(“Symbol”) to just return the current value of the beta against the respective index.

Beta formula in Excel

Interpret the Beta of a Stock

When the beta of a stock is less than 1 it that there is less systematic risk than the market. AAPL with the beta of 1.4 would go up/do down even more than the remainder of the market. And when the market goes down, AAPL goes down even further than the market. That is why we can say that it has more systematic risk than average. If a firm has a beta of zero, it would mean that it has no systematic risk. So, it does not react to the movements in the market at all.

Negative Beta

It is also possible that you have stocks that have a negative beta. The stocks with negative beta would typically move in the opposite direction of the market. These stocks serve as hedges when the market is going in the direction you expect it to.

Below are some of the stocks from S&P stocks list that have the negative beta as on today.


negative beta

Negative beta is very rare and in most cases, you will see stocks that have a positive beta.


References: Investopedia, Wiki


Interested in building, analyzing and managing Portfolios in Excel?
Download our Free Portfolio Template
I agree to the MarketXLS Terms and Conditions
Call: 1-877-778-8358
Ankur Mohan MarketXLS
Welcome! I'm Ankur, the founder and CEO of MarketXLS. With more than ten years of experience, I have assisted over 2,500 customers in developing personalized investment research strategies and monitoring systems using Excel.

I invite you to book a demo with me or my team to save time, enhance your investment research, and streamline your workflows.
Implement “your own” investment strategies in Excel with thousands of MarketXLS functions and templates.

MarketXLS is a complete Excel stock solution

Kevin Hsu


I have used lots of stock and option information services. This is the only one which gives me what I need inside Excel

Lloyd Lenase

Option Day Trader

MarketXLS is a data junkie’s dream. It gives me the flexibility to mine for hidden treasures.


Swing trader since 2011

I like to access historical closing prices on a particular date. That makes tracking performance easy.

Patrick Cusatis, Ph.D., CFA

Associate Professor of Finance - Penn State University

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today

🎉 Exciting news! 🎉

You are invited to join our Discord Channel.

Interact, learn, and grow with experts in the markets!

Join our Discord