Custom Beta Seven Days Formula in Excel

The Custom Beta Seven Days formula in Excel (with MarketXLS) helps you measure how volatile a stock (or any other traded symbol) is relative to a default or chosen benchmark over the past seven days. This powerful function fetches data directly from MarketXLS, enabling investors and analysts to quickly evaluate short-term market risk and volatility.

? Pro Tip: Use this formula to track how your selected security moves compared to the overall market index or another chosen stock over the last seven days.

Understanding Custom Beta Seven Days

Beta is a measure of a stock's volatility in relation to the overall market or another benchmark. A beta greater than 1.0 indicates that the stock tends to be more volatile than the market, while a beta less than 1.0 suggests lower volatility. By focusing on a seven-day period, the Custom Beta Seven Days formula provides a concise, short-term snapshot of relative volatility.

• Purpose: To gauge short-term volatility relative to a chosen benchmark (default = SPY).
• Key Benefits:
  • Quick volatility assessment for short windows.
  • Benchmark flexibility for comparative analysis.
  • Ideal for active traders looking at weekly trends.
• When to Use: Use this formula when you need a near-term measure of how a stock’s price moves against the market or another stock over a recent seven-day period.

Syntax and Parameters

Below is the syntax for using the CustomBetaSevenDays function directly in Excel with MarketXLS:

=CustomBetaSevenDays(Symbol, [symbol_Benchmark])

Return Value:
• Returns a numeric value indicating the seven-day beta.
• Returns "NA" if the symbol is invalid or if there is an issue (e.g., invalid license).

?? Note: If the function faces connectivity problems, an invalid symbol, or a license check fails, it will return "NA".

Examples and Usage

Below are practical examples of how to use the Custom Beta Seven Days formula:

1. Basic Usage with Default Benchmark (SPY):

   =CustomBetaSevenDays("MSFT")

   Calculates the seven-day beta of MSFT compared to SPY.

2. Using a Different Benchmark:

   =CustomBetaSevenDays("MSFT", "AAPL")

   Compares MSFT volatility with AAPL’s movement over the past seven days.

3. Using Indices or Other Instruments:

   • For an index:

     =CustomBetaSevenDays("^SPX")

   • For an option symbol:

     =CustomBetaSevenDays("@MSFT 110122C00020000")

   • For a cryptocurrency symbol:

     =CustomBetaSevenDays("BTCUSD:DEFAULT")

? Pro Tip: Running several CustomBetaSevenDays formulas simultaneously can add a bit of overhead to your spreadsheet. For best performance, try processing in batches or refreshing less frequently.

Common Questions

1. Why does the formula return "NA"?

   • The symbol might be invalid or misspelled.
   • Your MarketXLS license might be inactive.
   • Temporary connectivity or data retrieval issues.

2. Can I adjust the date range?

   • The function is specifically designed to calculate a seven-day beta (from the last market close). Currently, there is no built-in parameter to override this window within the CustomBetaSevenDays function.

3. Is this formula resource-intensive?

   • The function fetches data from MarketXLS on execution. If you have numerous calls in your worksheet, it can slow down recalculations. Consider using it sparingly or controlling when the sheet recalculates.

4. How often is the data updated?

   • MarketXLS typically updates data daily around market close. Check your MarketXLS settings for any adjustments to the refresh frequency.

5. What if I want a longer or shorter period than seven days?

   • For different periods (e.g., 15 or 30 days), use alternative MarketXLS functions like StockReturnFifteenDays or StockReturnThirtyDays, or consult MarketXLS documentation for a custom period beta function.

?? Note: Always ensure that your symbols are accurate and you have a valid subscription in MarketXLS before relying on the results of this function.