What is beta in investing beta

Beta, in stock lingo, is your volatility compass. Real estate REITs in Q2 2024 have betas around 0.7, benefiting from steady rental income despite market rate changes. $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. 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. Beta in investing represents sensitivity to market swings. For example, TSLA’s beta of 2.01 in Q2 2024 signals double the volatility of the Nasdaq Composite, attracting short-term traders seeking momentum plays.