BETA (against any benchmark index - defaulted to NSE:NIFTY)

Beta value of a stock relative to benchmark index. Thanks to Ricardo Santos for the original script. This script is adapted from it.

To understand beta, refer Investopedia link: https://www.investopedia.com/terms/b/bet...

A beta value of 1 means the stock is directly correlated to benchmark index - volatility would be same as overall market.
Beta value less than 1 and greater than 0 means the stock is less volatile than the market.
Beta value more than 1 would mean the stock is more volatile than the market.
A beta value of 1.2 would roughly translate to the stock being 20% more volatile than the overall market.

A negative beta value indicates the stock is inversely correlated to market.

In the example chart, you can see the Beta value change in NSE:RELIANCE with respect to NSE:NIFTY.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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