Share New Research 
Hello-
I reported an issue with the Beta indicator not working. Related but separate to this is the Beta calculation being incorrect by a significant amount. See attached backtest for a 5yr beta with AAPL as the target and SPY as the reference. Yahoo Finance has 5yr beta of 1.3 (monthly returns), I confirmed this using daily data over the same period and beta doesn't change significantly when using daily returns, so that's not the issue here with the manual Beta indicator.
In this case, beta seems to be more than half the correct value. I confirmed this on many other symbols too, with the same result.
Can anyone explain what could be going on?
https://www.quantconnect.com/forum/discussion/15027/beta-indicator-bug-or-broken/p1
Louis Szeto
Hi Justin
You have reversed the target and reference symbol. The order matters!
Best
Louis
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
Justin E
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
To unlock posting to the community forums please complete at least 30% of Boot Camp.
You can continue your Boot Camp training progress from the terminal. We hope to see you in the community soon!