The data points you need are: The portfolio weight of Stock 1 and Stock 2. Calculate this by dividing the value of each position by the total portfolio value. Let's label these values W1 and W2.

All companies must report their common stock outstanding on their balance sheet. The easiest way to calculate the number is to simply look it up. You can do that by navigating to the company's ...

A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves comparing the stock’s past price movements to market indices.