The returns and beta values in the visualizations are based on a moving 12 month period displayed on the right of the top chart. The 12 month period is also depicted graphically by the moving transparent rectangle in the lower chart. A stock’s beta value is estimated based on daily returns in the 12 month period. Each stock in the visualization is depicted by a bubble that is color-coded to indicate the stock’s industry. The bubbles are labeled with the stock’s symbol. The size of each bubble is proportional to the stock’s market capitalization. The bubble’s opacity is proportional to the stock’s average daily return volatility over the 12 month period. The stock’s return over the 12 month period is indicated by the bubble’s position on the x-axis. The stock’s beta value for the 12 month period is indicated by the bubble’s position on the y-axis. The vertical line in the dynamic scatter plot shows the return of the S&P 500 index in the 12 month period. The S&P 500 index return over the 12 month period is also displayed under “S&P 500 Return” to the right of the top chart.

The visualizations show that the rise in the stock market since March 2020 far outpaced the market’s growth before March 2020. The dynamic scatter plots also show significant clustering by industry where stocks in the same industry have similar beta values and 12 month returns compared to stocks in other industries. In addition, the visualizations show that, prior to March 2020, there was only a weak correlation between a stock’s beta value and return. However, after the market lows of March 2020, the visualizations show a strong positive relationship between beta and returns, implying significantly better market performance for high beta stocks than for low beta stocks. The positive relationship between beta and returns during the post-March 2020 period is remarkably consistent across industries and firms in the same industry.