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Calculate Beta (3 Different Methods)

This document contains daily stock prices for Home Depot and the S&P 500 index from June 1, 2020 to May 30, 2022. It calculates the daily returns for each and shows how Home Depot's stock price movements correlated to the S&P 500 over this period. The beta can be estimated by running a regression analysis on the daily returns to measure Home Depot's non-diversifiable risk compared to the overall market.

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VISHAL PATIL
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38 views10 pages

Calculate Beta (3 Different Methods)

This document contains daily stock prices for Home Depot and the S&P 500 index from June 1, 2020 to May 30, 2022. It calculates the daily returns for each and shows how Home Depot's stock price movements correlated to the S&P 500 over this period. The beta can be estimated by running a regression analysis on the daily returns to measure Home Depot's non-diversifiable risk compared to the overall market.

Uploaded by

VISHAL PATIL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Return (Home Return

Date Home Depot S&P500


Depot) (S&P500)
6/1/2020 242.56 3193.93
6/8/2020 232.09 3041.31 -4.32% -4.78%
6/15/2020 236.11 3097.74 1.73% 1.86%
6/22/2020 230.71 3009.05 -2.29% -2.86%
6/29/2020 237.88 3130.01 3.11% 4.02%
7/6/2020 239.42 3185.04 0.65% 1.76%
7/13/2020 249.25 3224.73 4.11% 1.25%
7/20/2020 253.97 3215.63 1.89% -0.28%
7/27/2020 254.14 3271.12 0.07% 1.73%
8/3/2020 260.03 3351.28 2.32% 2.45%
8/10/2020 268.56 3372.85 3.28% 0.64%
8/17/2020 271.12 3397.16 0.96% 0.72%
8/24/2020 274.05 3508.01 1.08% 3.26%
8/31/2020 258.13 3426.96 -5.81% -2.31%
9/7/2020 265.91 3340.97 3.01% -2.51%
9/14/2020 264.82 3319.47 -0.41% -0.64%
9/21/2020 258.43 3298.46 -2.41% -0.63%
9/28/2020 268.78 3348.42 4.01% 1.51%
10/5/2020 275.14 3477.14 2.37% 3.84%
10/12/2020 276.82 3483.81 0.61% 0.19%
10/19/2020 272.33 3465.39 -1.62% -0.53%
10/26/2020 256.66 3269.96 -5.76% -5.64%
11/2/2020 273.53 3509.44 6.57% 7.32%
11/9/2020 266.72 3585.15 -2.49% 2.16%
11/16/2020 259.64 3557.54 -2.66% -0.77%
11/23/2020 265.59 3638.35 2.29% 2.27%
11/30/2020 254.04 3699.12 -4.35% 1.67%
12/7/2020 255.97 3663.46 0.76% -0.96%
12/14/2020 261.67 3709.41 2.23% 1.25%
12/21/2020 262.13 3703.06 0.17% -0.17%
12/28/2020 257.00 3756.07 -1.96% 1.43%
1/4/2021 260.36 3824.68 1.31% 1.83%
1/11/2021 266.65 3768.25 2.42% -1.48%
1/18/2021 274.78 3841.47 3.05% 1.94%
1/25/2021 262.03 3714.24 -4.64% -3.31%
2/1/2021 269.81 3886.83 2.97% 4.65%
2/8/2021 268.50 3934.83 -0.48% 1.23%
2/15/2021 270.57 3906.71 0.77% -0.71%
2/22/2021 249.96 3811.15 -7.62% -2.45%
3/1/2021 245.29 3841.94 -1.87% 0.81%
3/8/2021 264.24 3943.34 7.72% 2.64%
3/15/2021 281.47 3913.10 6.52% -0.77%
3/22/2021 295.79 3974.54 5.09% 1.57%
3/29/2021 299.63 4019.87 1.30% 1.14%
4/5/2021 310.81 4128.80 3.73% 2.71%
4/12/2021 319.42 4185.47 2.77% 1.37%
4/19/2021 315.34 4180.17 -1.28% -0.13%
4/26/2021 315.13 4181.17 -0.07% 0.02%
5/3/2021 330.30 4232.60 4.81% 1.23%
5/10/2021 315.09 4173.85 -4.60% -1.39%
5/17/2021 307.44 4155.86 -2.43% -0.43%
5/24/2021 310.50 4204.11 0.99% 1.16%
5/31/2021 302.80 4229.89 -2.48% 0.61%
6/7/2021 304.16 4247.44 0.45% 0.41%
6/14/2021 296.17 4166.45 -2.63% -1.91%
6/21/2021 306.96 4280.70 3.64% 2.74%
6/28/2021 315.83 4352.34 2.89% 1.67%
7/5/2021 315.24 4369.55 -0.19% 0.40%
7/12/2021 314.70 4327.16 -0.17% -0.97%
7/19/2021 325.76 4411.79 3.51% 1.96%
7/26/2021 321.21 4395.26 -1.40% -0.37%
8/2/2021 322.82 4436.52 0.50% 0.94%
8/9/2021 324.27 4468.00 0.45% 0.71%
8/16/2021 322.23 4441.67 -0.63% -0.59%
8/23/2021 316.50 4509.37 -1.78% 1.52%
8/30/2021 323.31 4535.43 2.15% 0.58%
9/6/2021 326.54 4458.58 1.00% -1.69%
9/13/2021 330.20 4432.99 1.12% -0.57%
9/20/2021 331.99 4455.48 0.54% 0.51%
9/27/2021 324.48 4357.04 -2.26% -2.21%
10/4/2021 328.89 4391.34 1.36% 0.79%
10/11/2021 344.70 4471.37 4.81% 1.82%
10/18/2021 360.02 4544.90 4.45% 1.64%
10/25/2021 365.68 4605.38 1.57% 1.33%
11/1/2021 362.39 4697.53 -0.90% 2.00%
11/8/2021 366.55 4682.85 1.15% -0.31%
11/15/2021 402.03 4697.96 9.68% 0.32%
11/22/2021 396.13 4594.62 -1.47% -2.20%
11/29/2021 401.16 4538.43 1.27% -1.22%
12/6/2021 410.32 4712.02 2.28% 3.82%
12/13/2021 383.23 4620.64 -6.60% -1.94%
12/20/2021 392.21 4725.79 2.34% 2.28%
12/27/2021 409.93 4766.18 4.52% 0.85%
1/3/2022 388.79 4677.03 -5.16% -1.87%
1/10/2022 367.45 4662.85 -5.49% -0.30%
1/17/2022 344.83 4397.94 -6.16% -5.68%
1/24/2022 362.05 4431.85 5.00% 0.77%
1/31/2022 355.27 4500.53 -1.87% 1.55%
2/7/2022 346.00 4418.64 -2.61% -1.82%
2/14/2022 342.63 4348.87 -0.98% -1.58%
2/21/2022 312.78 4384.65 -8.71% 0.82%
2/28/2022 320.29 4328.87 2.40% -1.27%
3/7/2022 312.91 4204.31 -2.30% -2.88%
3/14/2022 338.60 4463.12 8.21% 6.16%
3/21/2022 308.73 4543.06 -8.82% 1.79%
3/28/2022 300.00 4545.86 -2.83% 0.06%
4/4/2022 309.16 4488.28 3.05% -1.27%
4/11/2022 302.61 4392.59 -2.12% -2.13%
4/18/2022 298.23 4271.78 -1.45% -2.75%
4/25/2022 298.51 4131.93 0.10% -3.27%
5/2/2022 292.46 4123.34 -2.03% -0.21%
5/9/2022 294.17 4023.89 0.58% -2.41%
5/16/2022 285.39 3901.36 -2.99% -3.05%
5/23/2022 306.52 4158.24 7.41% 6.58%
5/30/2022 300.85 4132.15 -1.85% -0.63%
How to Estimate Beta in Excel (Method #1)

Return (Home Return


Date Home Depot S&P500
Depot) (S&P500)
6/1/2020 242.56 3193.93
6/8/2020 232.09 3041.31
6/15/2020 236.11 3097.74
6/22/2020 230.71 3009.05
6/29/2020 237.88 3130.01
7/6/2020 239.42 3185.04
7/13/2020 249.25 3224.73
7/20/2020 253.97 3215.63
7/27/2020 254.14 3271.12
8/3/2020 260.03 3351.28
8/10/2020 268.56 3372.85
8/17/2020 271.12 3397.16
8/24/2020 274.05 3508.01
8/31/2020 258.13 3426.96
9/7/2020 265.91 3340.97
9/14/2020 264.82 3319.47
9/21/2020 258.43 3298.46
9/28/2020 268.78 3348.42
10/5/2020 275.14 3477.14
10/12/2020 276.82 3483.81
10/19/2020 272.33 3465.39
10/26/2020 256.66 3269.96
11/2/2020 273.53 3509.44
11/9/2020 266.72 3585.15
11/16/2020 259.64 3557.54
11/23/2020 265.59 3638.35
11/30/2020 254.04 3699.12
12/7/2020 255.97 3663.46
12/14/2020 261.67 3709.41
12/21/2020 262.13 3703.06
12/28/2020 257.00 3756.07
1/4/2021 260.36 3824.68
1/11/2021 266.65 3768.25
1/18/2021 274.78 3841.47
1/25/2021 262.03 3714.24
2/1/2021 269.81 3886.83
2/8/2021 268.50 3934.83
2/15/2021 270.57 3906.71
2/22/2021 249.96 3811.15
3/1/2021 245.29 3841.94
3/8/2021 264.24 3943.34
3/15/2021 281.47 3913.10
3/22/2021 295.79 3974.54
3/29/2021 299.63 4019.87
4/5/2021 310.81 4128.80
4/12/2021 319.42 4185.47
4/19/2021 315.34 4180.17
4/26/2021 315.13 4181.17
5/3/2021 330.30 4232.60
5/10/2021 315.09 4173.85
5/17/2021 307.44 4155.86
5/24/2021 310.50 4204.11
5/31/2021 302.80 4229.89
6/7/2021 304.16 4247.44
6/14/2021 296.17 4166.45
6/21/2021 306.96 4280.70
6/28/2021 315.83 4352.34
7/5/2021 315.24 4369.55
7/12/2021 314.70 4327.16
7/19/2021 325.76 4411.79
7/26/2021 321.21 4395.26
8/2/2021 322.82 4436.52
8/9/2021 324.27 4468.00
8/16/2021 322.23 4441.67
8/23/2021 316.50 4509.37
8/30/2021 323.31 4535.43
9/6/2021 326.54 4458.58
9/13/2021 330.20 4432.99
9/20/2021 331.99 4455.48
9/27/2021 324.48 4357.04
10/4/2021 328.89 4391.34
10/11/2021 344.70 4471.37
10/18/2021 360.02 4544.90
10/25/2021 365.68 4605.38
11/1/2021 362.39 4697.53
11/8/2021 366.55 4682.85
11/15/2021 402.03 4697.96
11/22/2021 396.13 4594.62
11/29/2021 401.16 4538.43
12/6/2021 410.32 4712.02
12/13/2021 383.23 4620.64
12/20/2021 392.21 4725.79
12/27/2021 409.93 4766.18
1/3/2022 388.79 4677.03
1/10/2022 367.45 4662.85
1/17/2022 344.83 4397.94
1/24/2022 362.05 4431.85
1/31/2022 355.27 4500.53
2/7/2022 346.00 4418.64
2/14/2022 342.63 4348.87
2/21/2022 312.78 4384.65
2/28/2022 320.29 4328.87
3/7/2022 312.91 4204.31
3/14/2022 338.60 4463.12
3/21/2022 308.73 4543.06
3/28/2022 300.00 4545.86
4/4/2022 309.16 4488.28
4/11/2022 302.61 4392.59
4/18/2022 298.23 4271.78
4/25/2022 298.51 4131.93
5/2/2022 292.46 4123.34
5/9/2022 294.17 4023.89
5/16/2022 285.39 3901.36
5/23/2022 306.52 4158.24
5/30/2022 300.85 4132.15
Results
Covariance of HD and S&P 500
Variance of S&P 500
Home Depot Beta
How to Estimate Beta in Excel (Method #2)

Return (Home Return


Date Home Depot S&P500
Depot) (S&P500)
6/1/2020 242.56 3193.93
6/8/2020 232.09 3041.31
6/15/2020 236.11 3097.74
6/22/2020 230.71 3009.05
6/29/2020 237.88 3130.01
7/6/2020 239.42 3185.04
7/13/2020 249.25 3224.73
7/20/2020 253.97 3215.63
7/27/2020 254.14 3271.12
8/3/2020 260.03 3351.28
8/10/2020 268.56 3372.85
8/17/2020 271.12 3397.16
8/24/2020 274.05 3508.01
8/31/2020 258.13 3426.96
9/7/2020 265.91 3340.97
9/14/2020 264.82 3319.47
9/21/2020 258.43 3298.46
9/28/2020 268.78 3348.42
10/5/2020 275.14 3477.14
10/12/2020 276.82 3483.81
10/19/2020 272.33 3465.39
10/26/2020 256.66 3269.96
11/2/2020 273.53 3509.44
11/9/2020 266.72 3585.15
11/16/2020 259.64 3557.54
11/23/2020 265.59 3638.35
11/30/2020 254.04 3699.12
12/7/2020 255.97 3663.46
12/14/2020 261.67 3709.41
12/21/2020 262.13 3703.06
12/28/2020 257.00 3756.07
1/4/2021 260.36 3824.68
1/11/2021 266.65 3768.25
1/18/2021 274.78 3841.47
1/25/2021 262.03 3714.24
2/1/2021 269.81 3886.83
2/8/2021 268.50 3934.83
2/15/2021 270.57 3906.71
2/22/2021 249.96 3811.15
3/1/2021 245.29 3841.94
3/8/2021 264.24 3943.34
3/15/2021 281.47 3913.10
3/22/2021 295.79 3974.54
3/29/2021 299.63 4019.87
4/5/2021 310.81 4128.80
4/12/2021 319.42 4185.47
4/19/2021 315.34 4180.17
4/26/2021 315.13 4181.17
5/3/2021 330.30 4232.60
5/10/2021 315.09 4173.85
5/17/2021 307.44 4155.86
5/24/2021 310.50 4204.11
5/31/2021 302.80 4229.89
6/7/2021 304.16 4247.44
6/14/2021 296.17 4166.45
6/21/2021 306.96 4280.70
6/28/2021 315.83 4352.34
7/5/2021 315.24 4369.55
7/12/2021 314.70 4327.16
7/19/2021 325.76 4411.79
7/26/2021 321.21 4395.26
8/2/2021 322.82 4436.52
8/9/2021 324.27 4468.00
8/16/2021 322.23 4441.67
8/23/2021 316.50 4509.37
8/30/2021 323.31 4535.43
9/6/2021 326.54 4458.58
9/13/2021 330.20 4432.99
9/20/2021 331.99 4455.48
9/27/2021 324.48 4357.04
10/4/2021 328.89 4391.34
10/11/2021 344.70 4471.37
10/18/2021 360.02 4544.90
10/25/2021 365.68 4605.38
11/1/2021 362.39 4697.53
11/8/2021 366.55 4682.85
11/15/2021 402.03 4697.96
11/22/2021 396.13 4594.62
11/29/2021 401.16 4538.43
12/6/2021 410.32 4712.02
12/13/2021 383.23 4620.64
12/20/2021 392.21 4725.79
12/27/2021 409.93 4766.18
1/3/2022 388.79 4677.03
1/10/2022 367.45 4662.85
1/17/2022 344.83 4397.94
1/24/2022 362.05 4431.85
1/31/2022 355.27 4500.53
2/7/2022 346.00 4418.64
2/14/2022 342.63 4348.87
2/21/2022 312.78 4384.65
2/28/2022 320.29 4328.87
3/7/2022 312.91 4204.31
3/14/2022 338.60 4463.12
3/21/2022 308.73 4543.06
3/28/2022 300.00 4545.86
4/4/2022 309.16 4488.28
4/11/2022 302.61 4392.59
4/18/2022 298.23 4271.78
4/25/2022 298.51 4131.93
5/2/2022 292.46 4123.34
5/9/2022 294.17 4023.89
5/16/2022 285.39 3901.36
5/23/2022 306.52 4158.24
5/30/2022 300.85 4132.15
How to Estimate Beta in Excel (Method #3)

Return (Home Return


Date Home Depot S&P500
Depot) (S&P500)
6/1/2020 242.56 3193.93
6/8/2020 232.09 3041.31
6/15/2020 236.11 3097.74
6/22/2020 230.71 3009.05
6/29/2020 237.88 3130.01
7/6/2020 239.42 3185.04
7/13/2020 249.25 3224.73
7/20/2020 253.97 3215.63
7/27/2020 254.14 3271.12
8/3/2020 260.03 3351.28
8/10/2020 268.56 3372.85
8/17/2020 271.12 3397.16
8/24/2020 274.05 3508.01
8/31/2020 258.13 3426.96
9/7/2020 265.91 3340.97
9/14/2020 264.82 3319.47
9/21/2020 258.43 3298.46
9/28/2020 268.78 3348.42
10/5/2020 275.14 3477.14
10/12/2020 276.82 3483.81
10/19/2020 272.33 3465.39
10/26/2020 256.66 3269.96
11/2/2020 273.53 3509.44
11/9/2020 266.72 3585.15
11/16/2020 259.64 3557.54
11/23/2020 265.59 3638.35
11/30/2020 254.04 3699.12
12/7/2020 255.97 3663.46
12/14/2020 261.67 3709.41
12/21/2020 262.13 3703.06
12/28/2020 257.00 3756.07
1/4/2021 260.36 3824.68
1/11/2021 266.65 3768.25
1/18/2021 274.78 3841.47
1/25/2021 262.03 3714.24
2/1/2021 269.81 3886.83
2/8/2021 268.50 3934.83
2/15/2021 270.57 3906.71
2/22/2021 249.96 3811.15
3/1/2021 245.29 3841.94
3/8/2021 264.24 3943.34
3/15/2021 281.47 3913.10
3/22/2021 295.79 3974.54
3/29/2021 299.63 4019.87
4/5/2021 310.81 4128.80
4/12/2021 319.42 4185.47
4/19/2021 315.34 4180.17
4/26/2021 315.13 4181.17
5/3/2021 330.30 4232.60
5/10/2021 315.09 4173.85
5/17/2021 307.44 4155.86
5/24/2021 310.50 4204.11
5/31/2021 302.80 4229.89
6/7/2021 304.16 4247.44
6/14/2021 296.17 4166.45
6/21/2021 306.96 4280.70
6/28/2021 315.83 4352.34
7/5/2021 315.24 4369.55
7/12/2021 314.70 4327.16
7/19/2021 325.76 4411.79
7/26/2021 321.21 4395.26
8/2/2021 322.82 4436.52
8/9/2021 324.27 4468.00
8/16/2021 322.23 4441.67
8/23/2021 316.50 4509.37
8/30/2021 323.31 4535.43
9/6/2021 326.54 4458.58
9/13/2021 330.20 4432.99
9/20/2021 331.99 4455.48
9/27/2021 324.48 4357.04
10/4/2021 328.89 4391.34
10/11/2021 344.70 4471.37
10/18/2021 360.02 4544.90
10/25/2021 365.68 4605.38
11/1/2021 362.39 4697.53
11/8/2021 366.55 4682.85
11/15/2021 402.03 4697.96
11/22/2021 396.13 4594.62
11/29/2021 401.16 4538.43
12/6/2021 410.32 4712.02
12/13/2021 383.23 4620.64
12/20/2021 392.21 4725.79
12/27/2021 409.93 4766.18
1/3/2022 388.79 4677.03
1/10/2022 367.45 4662.85
1/17/2022 344.83 4397.94
1/24/2022 362.05 4431.85
1/31/2022 355.27 4500.53
2/7/2022 346.00 4418.64
2/14/2022 342.63 4348.87
2/21/2022 312.78 4384.65
2/28/2022 320.29 4328.87
3/7/2022 312.91 4204.31
3/14/2022 338.60 4463.12
3/21/2022 308.73 4543.06
3/28/2022 300.00 4545.86
4/4/2022 309.16 4488.28
4/11/2022 302.61 4392.59
4/18/2022 298.23 4271.78
4/25/2022 298.51 4131.93
5/2/2022 292.46 4123.34
5/9/2022 294.17 4023.89
5/16/2022 285.39 3901.36
5/23/2022 306.52 4158.24
5/30/2022 300.85 4132.15
Results

Slope
RSQ

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