Hello,
MetaStock User - V10
Formula-1:
This formula is supplied with MetaStock for Beta Calculation. However, it requires the Index should be drop on chart and selected. Then put the relevant Beta indicator on the chart. However, it is cumbersome to use it because , need to keep it selected.
(( 21 * Sum( ROC( CLOSE,1,%) * ROC( INDICATOR,1,%),21))-
( Sum( ROC( CLOSE,1,%),21) * Sum( ROC( INDICATOR,1,%), 21)))
/
(( 21 * Sum( Pwr( ROC( INDICATOR,1,%),2),21)) -
Pwr( Sum( ROC( INDICATOR,1,%),21),2))
)
Formula-2:
This formula is automated version of the formula-2. Where it pick up the index data
based on the Securiy() function. if you see closely the logic to calculate Beta is same.
(
(( 21 * Sum( ROC( CLOSE,1,%) * ROC( (Security("S&P CNX Nifty",CLOSE) ),1,%),21))-
( Sum( ROC( CLOSE,1,%),21) * Sum( ROC( (Security("S&P CNX Nifty",CLOSE) ),1,%), 21)))
/
(( 21 * Sum( Pwr( ROC( (Security("S&P CNX Nifty",CLOSE) ),1,%),2),21)) -
Pwr( Sum( ROC( (Security("S&P CNX Nifty",CLOSE) ),1,%),21),2))
)
In above both scenario , over all concept is same. I've selected same company & index value. However, i'm not able to see the exact same value of Beta but in Formula-2 it is happening after 9 days delay.When i compare formula-2's value with Amibroker's Beta indicator it is same for every day. I'm not able to understand , is it a problem in Metastock's default formula or some snag in MY
formula.
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