Variables that affect beta calculations

Time Period

Beta is dependent upon the time period considered to calculate it. On Infront Analytics Platform, betas are calculated for periods ranging from 1 to 5 years.

Reference date

Betas depend also on the choice of date of reference. On Infront Analytics Platform, you have the option to customize the reference date.

Sampling frequency

Beta is also dependent upon the sampling frequency used to calculate it. On Infront Analytics Platform, betas are calculated using weekly close prices.

Reference index

Beta calculations heavily depend on the choice of the reference index. The reference index generally used on Infront Analytics Platform is the most common country index for the country were the firm is incorporated, for example the FTSE 100 for UK companies. However, for some companies, the index used is the one of the country where the stock is quoted.