BETA vs Correlation

Discussion related to finance and accounting
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HassanKhan
Posts: 7
Joined: Fri Feb 16, 2018 11:37 am

Re: BETA vs Correlation

Post by HassanKhan » Sun Mar 25, 2018 10:12 pm

They are not the same dear.

rana_iqbal
Posts: 4
Joined: Thu Feb 15, 2018 10:03 pm

Re: BETA vs Correlation

Post by rana_iqbal » Sun Mar 25, 2018 10:18 pm

Beta and Cor are def not the same. Correlation has values in between -1 and +1, beta can be above/below that.
Easiest way is;
Beta = Cov(x,y) / Var (y)
Cor = Cov(x,y) / SD(x) * SD(y) where (SD = SQRT(Var))

Actually you can find them pre-calculated here: http://watchdog.saber.pk/StockAnalysis.aspx?Days=365

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