Beta coefficient, also known as beta coefficient, is a risk index to measure the price fluctuation of individual stocks or stock funds relative to the whole stock market. β coefficient is a tool to evaluate the systemic risk of securities, which is used to measure the volatility of a securities or portfolio relative to the overall market. Common investment terms such as stocks and funds.
At present, according to the characteristics and perspectives of research paradigm, there are three main methods of stock investment analysis: basic analysis, technical analysis and evolution analysis. The theoretical basis, premise, hypothesis, research paradigm and application scope of these three analytical methods are different, and they are interrelated and have important differences in practical application.
Among them, basic analysis belongs to general economic paradigm, technical analysis belongs to mathematics or Newton paradigm, and evolutionary analysis belongs to biology or Darwin paradigm; Basic analysis is mainly applied to the selection of investment targets, while technical analysis and evolution analysis are mainly applied to the time and space judgment of specific operations as an important means to improve the effectiveness and reliability of stock investment analysis.
Beta coefficient is one of the important reference indexes to measure structural and systemic risks in the evaluation method of stock market fluctuation risk and investment opportunity, and its true meaning is the deviation degree of individual assets and their combinations (stock fluctuation) from the overall assets (market fluctuation).