Custom Beta Between Two Dates In Past Formula in Excel

Understanding Custom Beta Between Two Dates In Past

The Custom Beta Between Two Dates In Past formula in Excel helps you measure a stock’s volatility in comparison to a benchmark (typically the market) over a defined date range. It’s especially useful for:

• Risk assessment: Helps in understanding how much your chosen stock fluctuates relative to the benchmark.
• Portfolio management: Assists in making informed decisions about stock selection and diversification strategies.
• Custom date analysis: Allows users to focus on specific historical periods to see how a stock performed relative to the market during those times.

? Pro Tip: Use this formula when you need a quick, reliable snapshot of a stock’s beta over a custom timeframe, rather than relying on broad or default ranges.

Syntax and Parameters

=CustomBetaCustomDates(Symbol, StartDate, EndDate, [symbol_Benchmark], [ReturnPeriod])

Return Value
• Returns a numerical value representing the beta of the specified stock relative to the benchmark for the chosen date range.
• If the function encounters an invalid symbol or other errors, it returns "NA".

?? Note: Inputting an invalid period (other than "daily", "weekly", or "monthly") will also result in an error message.

Examples and Usage

Basic Examples

1. Using cell references for dates:

   =CustomBetaCustomDates(A1, A2, A3)

   Where A1, A2, and A3 contain your symbol, start date, and end date respectively.

2. Entering dates directly:

   =CustomBetaCustomDates("MSFT", "2024-03-15", "2024-04-15")

3. Using Excel date functions:

   =CustomBetaCustomDates("MSFT", TEXT(A1,"yyyy-mm-dd"), TEXT(A2,"yyyy-mm-dd"))

Advanced Scenarios

• Analyzing Index Beta:

  =CustomBetaCustomDates("^SPX", "2024-01-01", "2024-06-30", "SPY", "monthly")

• Evaluating Option Beta:

  =CustomBetaCustomDates("@MSFT 110122C00020000", "2023-01-01", "2023-02-01")

• Crypto Analytics:

  =CustomBetaCustomDates("BTCUSD:DEFAULT", "2023-05-10", "2023-06-10", "^SPX", "weekly")

? Pro Tip: Combine this function with other MarketXLS formulas for a more comprehensive market analysis, such as total dividends paid or daily return percentages.

Real-World Applications

• Portfolio Volatility Check: Compare multiple stocks’ betas against “SPY” to see which assets carry higher market risk.
• Date-Specific Market Events: Focus on dates around major market events (e.g., earnings releases, announcements) to evaluate volatility changes.

Common Questions

1. Why am I getting an "NA" result?

• Ensure the Symbol is valid.
• Verify that the StartDate and EndDate are in correct date formats.
• Check that ReturnPeriod is one of "daily", "weekly", or "monthly".

2. How often is the data updated?

Data updates depend on MarketXLS’s data sourcing. Typically, prices and calculations are refreshed daily, but always confirm your data interval.

3. How can I use this formula for long-term analysis?

Use "monthly" or "weekly" for extended periods to smooth daily fluctuations and get a long-term perspective on beta trends.

?? Note: For even broader analysis, consider complementing this beta metric with other MarketXLS formulas:

• Total Dividends Paid Between Two Days In The Past
• Stock Return Seven Days
• Stock Return Fifteen Days
• Stock Return Thirty Days

4. Are there performance impacts with large data ranges?

While the function is optimized, querying an extensive date range (especially with daily data) may slightly slow down your spreadsheet. Keep ranges focused to maintain optimal performance.