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Risk and portfolio

Volatility and beta

Volatility measures how much a share price swings; beta compares those swings with the market as a whole.

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Volatility measures how much a share price moves up and down. Beta compares those moves with the market: a beta of 1 means the share has moved about as much as the market, 1.5 means about 50 % more, and 0.5 about half as much.

Why it matters

A share that swings a lot can fall far just when you need the money, and big drops are hard to sit through. Knowing a share's beta helps you judge whether its ups and downs fit your time horizon and nerves.

What beta does not tell you

Beta is calculated from past prices, so it changes over time and says nothing about the business itself. A low-beta share can still fall sharply on company-specific news.

Try it

The High potential, high risk profile in the screener shows smaller, fast-growing companies with a beta of 1.3 or higher - shares that can rise a lot and fall a lot.

Try it in the screener

The High potential, high risk profile shows smaller, fast-growing companies with big swings. It is a learning example, not a recommendation.

Show high potential, high risk stocks

This content is general information, not investment advice.