What is the stock's beta and correlation with the broader market/sector?

Answer

The press release you shared about Amrize’s second‑quarter 2025 results does not contain any quantitative information about the stock’s statistical relationship to the broader market—specifically, its beta or its correlation with a market or sector index. Because those metrics are not disclosed in the news excerpt, I cannot provide a concrete figure for either the beta or the correlation.

Below is a brief overview of what those measures represent, how they are typically calculated, and where you can obtain the most up‑to‑date numbers for Amrize (ticker AMRZ) yourself.

1. What is Beta?

• Definition: Beta measures the sensitivity of a stock’s returns to movements in a benchmark (usually a broad market index such as the S&P 500, MSCI World, or a sector‑specific index).

  • Beta = 1 → The stock moves in line with the benchmark.
    
  • Beta > 1 → The stock is more volatile than the benchmark (e.g., a beta of 1.5 means a 1 % move in the benchmark tends to produce a 1.5 % move in the stock).
    
  • Beta < 1 → The stock is less volatile (e.g., defensive or “low‑beta” stocks).
    
  • Negative beta → The stock tends to move opposite the benchmark (rare, typically seen in some hedging instruments).

• Typical Calculation:
  
  [
  \beta = \frac{\text{Cov}(R{\text{stock}}, R{\text{benchmark}})}{\text{Var}(R_{\text{benchmark}})}
  ]
  
  where (R) denotes periodic (daily, weekly, or monthly) returns.

• Interpretation for Investors:

  • A higher beta suggests higher systematic risk and potentially higher expected returns (and larger drawdowns).
    
  • A lower beta suggests the stock may be more suitable for risk‑averse investors or for portfolio diversification.

2. What is Correlation?

• Definition: Correlation quantifies the linear relationship between two series of returns, ranging from –1 (perfect inverse relationship) to +1 (perfect direct relationship).

  • Correlation = 1 → Returns move together perfectly.
    
  • Correlation ≈ 0 → No linear relationship (the two series move independently).
    
  • Correlation = –1 → Returns move in opposite directions perfectly.

• Typical Calculation:
  
  [
  \rho = \frac{\text{Cov}(R{\text{stock}}, R{\text{benchmark}})}{\sigma{\text{stock}} \, \sigma{\text{benchmark}}}
  ]
  
  where (\sigma) denotes the standard deviation of returns.

• Use Cases:

  • Portfolio construction (to reduce overall volatility).
    
  • Identifying how closely a stock tracks its sector or a specific theme.

3. How to Find AMRZ’s Beta and Correlation

Since the press release does not provide these figures, you can retrieve them from the following reputable sources:

Tip: If you need a custom correlation (e.g., with the “Professional Builders” sector index), you can calculate it yourself using any statistical software:

import pandas as pd
import numpy as np

# Load price data (adjusted close) for AMRZ and the benchmark
amr = pd.read_csv('AMRZ.csv', index_col='Date', parse_dates=True)['Adj Close']
bench = pd.read_csv('Benchmark.csv', index_col='Date', parse_dates=True)['Adj Close']

# Compute daily returns
amr_ret = amr.pct_change().dropna()
bench_ret = bench.pct_change().dropna()

# Align the series
aligned = pd.concat([amr_ret, bench_ret], axis=1).dropna()
beta = np.cov(aligned.iloc[:,0], aligned.iloc[:,1])[0,1] / np.var(aligned.iloc[:,1])
corr = np.corrcoef(aligned.iloc[:,0], aligned.iloc[:,1])[0,1]

print(f"Beta: {beta:.3f}")
print(f"Correlation: {corr:.3f}")

4. What to Expect for a Newly‑Listed Company Like AMRZ

While I can’t give the exact number, it’s helpful to understand the typical range for a firm that:

1. Just listed on NYSE & SIX (June 23 2025).
   
2. Operates in the “professional builders” niche, which is often categorized under Industrial/Construction or Consumer Discretionary.
   
3. Reported stable revenue but a “challenging environment.”

Historically, companies in the construction‑services space have beta values ranging from ~0.8 to 1.4:

Correlation with the broader S&P 500 often mirrors the beta: a beta of ~1 typically implies a correlation of 0.6 – 0.8 (moderately high), while a lower beta can correspond to correlation around 0.4 – 0.6. For a niche construction‑services player, correlation with a Construction‑Industry Index (e.g., S&P Composite 1500 Construction Index) could be higher—often 0.7 – 0.9—because sector‑specific factors drive both.

5. Next Steps for You

1. Check the latest 10‑Q/10‑K (filed after Q2 2025) – companies often disclose beta in the “Risk Factors” or “Quantitative and Qualitative Disclosures About Market Risk” sections.
   
2. Visit a financial data platform (Yahoo! Finance, Bloomberg, Refinitiv) and pull the most recent beta.
   
3. If you need a custom correlation, download price data for AMRZ and the relevant benchmark (S&P 500, a construction‑sector ETF, or a regional index) and compute the Pearson correlation as shown above.
   

If you retrieve a beta or correlation value and would like help interpreting it in the context of your investment strategy, feel free to share the numbers and I can provide a deeper analysis.