What is beta in investing beta in investing represents

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. Trending: Microsoft's Climate Innovation Fund Just Backed This Farmland Manager — Accredited Investors Can Join the Same Fund Now that you have that set, let’s begin crunching some numbers. To begin, gather the following: In investing terms, beta defines market-linked volatility. Oil service firms maintain about 1.05 beta in 2024, with price swings tethered to WTI crude fluctuations.