Beta is a volatility measurement compared to the market (benchmark) returns. It is calculated using regression analysis. If the Beta is greater than 1. Let say 1.5 it means the stock has the tendency to move 50% more than the benchmark index i.e if the index moved 1% then the stock would have moved 2% in terms of returns(either positive or negative). If the Beta is 0.5 then it means the stock will make only 1% returns for every 2% returns in index and if beta for a stock is less than 1 then such stocks are termed as low beta stock. If the Beta = 1 then both the stock and the benchmark index move in the same direction and yields the same returns.
High Beta Stocks
If Beta of a stock is more than 1.5% then such stocks are terms as high beta stock. Which relatively shows more volatility than the benchmark Index. Generally intraday traders and short term positional traders trade high beta stocks to generate high returns by taking high risk.
The Beta of the stock constantly vary with respect to time. So a high beta stock over a period of time may not be a high beta stock as it beta change with time.
How to Install High Beta Scanner?
1)Download the High Beta Scanner to your local machine -> Unzip it and save it in your Program Files->Amibroker->Formulas->Exploration Folder and Set the Benchmark Index in the AFL code line 3. In my case i opted NIFTY-I as the benchmark index
2)Open New Analysis -> Settings -> Choose Periodicity as Daily
3)Select All Symbols from the Apply To drop down menu
4)Select the range option to 1 Recent Day(s)
5)Press Explore Button
6)You are Done
List of High Beta Stock Futures as on 20th Feb 2015 where beta > 1.5 in relative to Nifty Futures
High Beta Scanner – Amibroker AFL Code