Beta of a stock is calculated by squaring the division of co-variance and standard deviation
Interpretation
Beta is a measure of the risk of an individual stock in relation to the stock market risk. It shows how a stock tends to move in the future
For eg. A slope rises when it is above 20-day SMA and falls when it is below it
Default Parameters Used/Inputs
Data Line 1
Data Line 2
Change Bars
Bars
Returns/Output
Beta of the stock
Formula
B[X]=[Cum(((Mom(I1[X],Rm)-SMA(I1[X],Ra))*(Mom(I2[X],Rm)-SMA(I2[X],Ra))),X)]/[Cum((Mom(I2[X],Rm)-SMA(I2[X],Ra)),X)];
where B[X] indicates Beta, Rm=1..ChangeBars, Ra=1..Bars, Mom is the Momentum
I1 and I2 are the input lines
