[Metastockusers] Alpha and Beta

["Henry Z Kaczmarczyk" <henry1224@xxxxxxxxx>]

Here are the formulas for Alpha and Beta

Beta
________________________________________________
{This formula calculates Beta which is a measure of volatility of 
one security against another. This is typically used to measure the 
volatility of a stock against an index like the S&P 500.  A value 
greater than one indicates the stock is more volatile than the 
index. 

Note, this formula is set to calculate beta over 21 periods.  To 
change the time periods replace each instance of 21 in the formula 
with the desired number of periods.}

A:=Security("C:\Metastock Data\BM Data\.SPX",C);
B:=((21 * Sum(ROC(C,1,%) * ROC(A,1,%),21))-
(Sum(ROC(C,1,%),21) * Sum(ROC(A,1,%),21))) 
/ 
((21 * Sum(Pwr(ROC(A,1,%),2),21)) - 
Pwr(Sum(ROC(A,1,%),21),2));
B;


________________________________________________________________

A:=Security("C:\Metastock Data\BM Data\.SPX",C);
B:=((21*Sum(ROC(C,1,%)*ROC(A,1,%),21))-
(Sum(ROC(C,1,%),21)*Sum(ROC(A,1,%),21)))/ 
((21*Sum(Pwr(ROC(A,1,%),2),21)) - 
Pwr(Sum(ROC(A,1,%),21),2));
ALPHA:=(Sum(ROC(C,1,%),21)-(B)*Sum(ROC( A,1,%),21))/21;
Alpha;





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