Beta is a term which measures the risk of market and help investors to select stocks which may fit their risk calculations. But what will happens if you will found more then one beta from different web sites for the same stock. .
Let us try to answer the problem first that what to do when you get three different beta from three different sites for same stock
To answer the question we must understand what beta actually tells us beta is a score which measure the risk of a particular stock against the whole market. The calculations of that score are made on the basis of regression analysis.
Let us try to find a beta in a market which is usually at 500 index at this point the given beta is 1. If your stock is more volatile then the beta will be more then 1 and if otherwise the beta will be less then 1.
For more understanding consider a stock having 0.8 beta will hopefully returned to 80 percent of the overall market and a stock with 1.2 beta will move 20 percent more then the overall market.
Here the question arises if there are more then one methods for the calculation of beta the answer is in positive. Out of many one variable is how for you surf the past data, some web sites surf last three years and some surf last five years data. Hence either will produce different result.
One variable is that how much you go back to collect data.
Some websites do not collect data by themselves the seek it from different vendors
So the best strategy is to get beta from website which you think is trust worthy.
Now this is time to discuss that actually what beta tell us about the stock (s)
Beta will help us in selection of stocks whose fluctuation may fall within ones risk range
Beta will tell the behavior of stock when market is wide or in systemic conditions
Beta will not tell us any thing about stock future because whole of its calculations are made on past data basis
Beta will not tell us any impact of legislation on stock that effect the company business positively or negatively
Beta will not tell us the strengths and weaknesses of said company within the industry
What is the conclusion of all discussion? If you seek aid from beta get all financial information from single and trust worthy source. Do not wonder to different websites, even if you want to compare companies you will be sure that data collection and analysis are consistent and all analyses are made by the team of professionals.
Final words about beta are it will help you to determine short term price swings but it will not help you at all if you plan to determine such type of price swings in near or far future