The beta factor complements volatility. It, too, indicates the potential of share prices to fluctuate. The beta factor is a risk factor that expresses the dynamics of a share, i.e. the velocity at which it experiences fluctuations in comparison with other shares. The beta factor is calculated from historical data on the basis of statistical methods. A beta of 1 is defined as a share price development that is exactly in line with the index. If the price fluctuations of a share is more pronounced than those of the index, the beta will exceed 1. A beta of less than 1 means that the fluctuations of a share are generally less significant than those of the index.