A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Tom: RE Stock Price Stability

Is there a difference between Stock Price Stability and Beta?

If there is what is the difference?

As I understand it Beta is the variance of a stocks price performance from the S+P 500 (usually) and I assume that is measured over some particular time period.
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Stock's Price Stability--a relative ranking of the standard deviation of weekly percent changes in the price of a stock over the past five years. The ranks go from 100 for the most stable to 5 for the least stable.

Beta--a relative measure of the historical sensitivity of the stock's price to overall fluctuations in the New York Stock Exchange Composite Index. A Beta of 1.50 indicates a stock tends to rise (or fall) 50% more than the New York Stock Exchange Composite Index. The ''Beta coefficient'' is derived from a regression analysis of the relationship between weekly percentage changes in the price of a stock and weekly percentage changes in the NYSE Index over a period of five years. In the case of shorter price histories, a smaller time period is used, but two years is the minimum. The Betas are adjusted for their long-term tendency to converge toward 1.00.

Toofuzzy