What is beta in investing ? Besides measuring volatility

What is beta in investing? Besides measuring volatility, it guides diversification. Defense sector stocks, with betas around 0.6 this June, offer low-volatility anchors amid geopolitical risk. The collaboration with GE Aerospace is intended to advance hybrid electric propulsion systems that can meet the demands of both defense and commercial aviation, Beta said. Understanding beta can be a valuable tool when building your investment portfolio. For those with a low risk tolerance, focusing on stocks with betas between 0 and 1 may align better with your financial goals. These stocks tend to be less volatile than the broader market, which can offer more stability. When investors ask, “what is beta in investing,” analysts point to correlation data. S&P 500 growth stocks have risen in beta to 1.25 this year due to higher inflation and shifting rate expectations.