Home r/NepalStock Would putting money in a stock with a beta of 1 be the same as investing in an index fund? Earnmoney.com.np r/NepalStock October 3, 2023 1 min readWould putting money in a stock with a beta of 1 be the same as investing in an index fund? Earnmoney.com.np Movement of both would mirror the movement of the market haina ta? View on r/NepalStock by panauti_12 Related Popular Tags: Stock, Money, Investing, market, putting
Beta is just a measure of past correlation. it is not indicative of what the stock might do in the future.
theoretically, that is what should happen.
I think beta is calculated within a sector. So if beta stays at 1 then its equivalent to investing in the sector index fund if such a thing exist (not in nepal ofcourse). But mostly index fund i see are a best performing stocks in a exchange that are mix of different sectors.