If your return interval is short (e.g., daily), using simple returns vs log returns would be very close to each other and using either would give you very similar beta estimates. The distinction only becomes relevant when your return interval is long (e.g., annual).
Thank you for watching this video. If you like the spreadsheet used in the video, it only costs $1 to purchase on Gumroad: initialreturn.gumroad.com/l/mhdclt
I notice your instructions state the return values to be by month. As I follow your actions you have calculated return by day. Also your example has data only for January 1 to January 12 for reach month. This will omit data for the last part of each month in the example. If I am not understanding please clarify. And where can adjusted stock prices be obtained? Thanks for your time.
Hello there. It seems the confusion arises from the date format, which is day/month/year in this video. For example, 01/06/2018 is June 1st, 2018 and 01/07/2018 is July 1st, 2018. You can get adjusted prices from Yahoo! Finance for free. We have a separate video on that titled "downloading stock price data". Hope this helps!
As per calculation in beta values in foreign countries How to calculate the Indian Market beta values? sir Can u do video in the Indian market sir pls...
It's the beta for Tesla. Quickly checked Toyota's historical prices on Yahoo! Finance, but there seems to be an error there. Toyota returns (5 year, monthly data) are identical to S&P500 returns, yielding a beta exactly equal to 1. Looks like a glitch...
Thank you so much. Now i am a stock broker and i think this video is useful for me to manage porfolio for my customer
Great to hear you find our content useful!
Thanks so much for sharing . Very helpful. Clear explanation
Glad it was helpful!
Excellent presentation and explanation.
Delighted to hear that! Thanks!
Why using simple returns instead of log returns? What is best practice for beta calculus?
If your return interval is short (e.g., daily), using simple returns vs log returns would be very close to each other and using either would give you very similar beta estimates. The distinction only becomes relevant when your return interval is long (e.g., annual).
Thank you for watching this video. If you like the spreadsheet used in the video, it only costs $1 to purchase on Gumroad: initialreturn.gumroad.com/l/mhdclt
I notice your instructions state the return values to be by month. As I follow your actions you have calculated return by day. Also your example has data only for January 1 to January 12 for reach month. This will omit data for the last part of each month in the example. If I am not understanding please clarify. And where can adjusted stock prices be obtained? Thanks for your time.
Hello there. It seems the confusion arises from the date format, which is day/month/year in this video. For example, 01/06/2018 is June 1st, 2018 and 01/07/2018 is July 1st, 2018. You can get adjusted prices from Yahoo! Finance for free. We have a separate video on that titled "downloading stock price data". Hope this helps!
As per calculation in beta values in foreign countries
How to calculate the Indian Market beta values? sir
Can u do video in the Indian market sir pls...
hi there, do you mean estimating the beta of a particular Indian stock or the beta of the Indian stock market in an international context?
Is this the beta for S&P or beta for Tesla. I am trying to compute that of toyota but the beta is ridiculous
It's the beta for Tesla. Quickly checked Toyota's historical prices on Yahoo! Finance, but there seems to be an error there. Toyota returns (5 year, monthly data) are identical to S&P500 returns, yielding a beta exactly equal to 1. Looks like a glitch...