Datastream: create list from range and find the historical beta

How to find betas and how to download them?
Not many databases offer this possibility, but Datastream does.

Without getting into the finer details of programming and constructing beta's it is possible to perform downloads with pre-made betas.
This post will show you how.
(assuming you are familiar with the basic functions of Datastream)

Uploading a list of companies
(e.g. from Stoxx 50)

Press option Create from range. Next either store locally (the very computer you are working on) or upload to remote server (enabling to work with any computer with Datastream in the world)
Uploading will result in the following pop up

memorize the list code L#H23098 (in this case)

Go to Time series menu.
Either use button for locally stored list

or use the rule to write down the memorized list name

Next: finding the Beta
The BETA is defined as the measure of an asset's risk in relation to the market (often an index). 
The higher the beta, the better, as a rule as it shows the times return on an investment (simplified)

Use the button right under the orange datatypes button

I have searched for beta. For a DataStream calculated historical beta take the second one.
Take note of the expression behind the name and code.
REGB#(LN#(Li)/LAG##(x(Li),1M)),LN#(X/LAG#(X,1M)),60M)
Select desired beta

Result. Historical betas.

To those interested: this post goes deeper into the matter (Blog Mark Bruyneel)

BETAs in Datastream

Beta's are used to measure the volatility of a share.

Static search is pretty easy, as the pic illustrates

Datastream:

Only the the latest calculated BETA can be retrieved from Datastream as a number for active equities.
Static Request is needed.





But what is a beta?





Betas compare the movement of a stock against the market. Over a period it expresses the relative movement of the price against the market.

Calculation method:


The beta factor is derived by performing a least squares regression between adjusted prices of the stock and the corresponding Datastream market index.

The Datastream beta factor is calculated using stock prices and market indices as the only variables.

Calculation is explained here (click link)
Calculations in Excel:

  

The following site explains how to calculate your own Betas
http://financetrain.com/how-to-calculate-stock-beta-in-excel/

First step is : downloading prices for stock (P) and benchmark index (Pi) (the index it is traded)

2nd step: Calculate % returns: =((Cell2-Cell1)/(Cell1)*100
(see image above)

Step 3, Beta:
(1 option) Beta = Covar(rs - rm)/ var(rm)
rs = return stock and rm is return market


(2 option) (excel’s slope function) Beta = SLOPE(range of % change of equity, range of % change of index)   (see image above for equity)


Historic BETAs can be calculated through the following formula:

REGB#(LN#(X/LAG#(X,1M)),LN#(Y/LAG#(Y,1M)),60M)
X = market index (e.g. TOTMKUK or FTALLSH) Y = equity (e.g. MKS)

Condition for your research is that the BETAs you calculated are from equities that are part of the same market Index, or else they can't be compared.

























Or you can use the menu (ready made formula's) here