DataStream Beta Calculation

[Michi]

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]

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]

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]

Depends of what "adjusted price" means. If that's just split-adjusted then use that. If not, use normal price.