DataStream Beta Calculation

Michi

Newbie
4 0
Hi everyone,

as a new member of this forum I want to ask a question about datastream:

I want to estimate Beta over a long period of time. Which Datatype do you recommend when extracting the data:

price adjusted or total return index

I am not sure due to the total return index being so much higher in value which is the correct one

thanks a lot folks

best
Michi
 

Rhody Trader

Senior member
2,620 265
Beta is a reflection of the sensitivity of a given stock's price to the movement of the overall market. You wouldn't want to use total return figures, as dividends would be treated separately.
 

Michi

Newbie
4 0
Sorry I am really a beginner in this Field. In datastream I have the possibility to choose 3 different Kind of datatypes: total Return Index of a Stock, the normal Price and the adjusted Price.
What shall I choose then?

Thanks already for your help
 

Rhody Trader

Senior member
2,620 265
Depends of what "adjusted price" means. If that's just split-adjusted then use that. If not, use normal price.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock