Where can I find the alpha and beta values of any stock? I tried a few sites like Moneycontrol, Tickertape and Screener.in but I could not find the option.
Please help me out with this if you know trustworthy sites.
If you are Zerodha client you can check beta of stock on stock fundamentals from market watch itself. There is nothing as alpha for a stock.
Hi @siva thank you for the quick reply. Yes, I found Beta in fundamentals. But as you can see, on Tickertape.in there is a filter Alpha as well, which shows return of the stock compared to indices. The problem is, when I search the same stock on Tickertape.in , there is no Alpha value in the information of the stock.
What is alpha and beta of a stock ?
Just wanted to know
Is it in varsity ?
Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations.
So, if the Alpha of stock is 9 that means the stock moved 9% on positive side compared to benchmark (indices).
Beta is a measure of volatility relative to a benchmark. Ideal Beta=1. So if Beta of a stock is 1.5, the stock has 1.5 times volatility compared to the benchmark (indices).
This is what understood from the textbook definitions given on the internet.
You can find in-depth information about this on the internet.
@Micro thanks for the detailed explanation.
Ok, but generally Alpha is used at fund level or manager level, how much extra returns fund or manager generated compared to benchmark, to guage their skills.
Anyhow other easy way to check is go to fundamentals, see it’s 1 month or 1 year return and compare with any benchmark you are measuring against.
Thank you very much @siva
I don’t think its means 9 times more relatively. As far as I understand its additional 9percent over benchmark.
So ifs index has delivered 10 percent and stock has alpha of 9percent it means the stock has delivered 19 percent in the same period. Please correct me if am wrong.
Yes, you’re right. I corrected it.
Thank you for bringing that to my notice