Stock’s Beta Explained.
Stock’s beta is a measure which indicates how volatile a stock is compared with the benchmark Indices, like Nifty50.
Stock’s beta helps in
1- Evaluating the expected risks and returns of a portfolio.
2- Building a balance portfolio of stocks

Interpretation:
1. Stocks with beta 1- indicates stock move exactly sync with its benchmark Index. If Nifty50 will rise 1%, stock with beta 1 will rise 1%, If Nifty50 falls 1%, stock with beta 1, will also fall 1%.
2. Stocks with beta more than 1- Indicates stock can be more volatile than benchmark index. If stock beta is 1.5, when Nifty50 rises 1%, stock can rise 1.5%. If Nifty50 falls 1% stock with beta 1.5 can fall 1.5%.
3. Stocks with beta less than 1- Indicates stock is less volatile than benchmark index. If stocks beta is 0.5, when Nifty50 rises 1%, stocks can rise 0.5%, if Nifty50 falls 1%, stocks with beta 0.5 can fall 0.5%.
Stock beta can be seen on internet or on online screeners.

Beta analysis Limitation:
People do Beta analysis to gauge the level of risk of a portfolio. Main drawback of beta is that beta is a backward-looking tool and measures one specific type of risk.