Beta
One classic measure of risk is known as beta. Beta gauges an investment's volatilty relative to the overall market. A stock with a beta of 1 is said to be as volatile as the overall mariket. A stock with a beta less than 1 is said to be less volatile than the market. But a stock with a beta exceeding 1 will be more erratic. For example, if a stock has a beta of 1.7, it would be considered 70% more volatile than the S&P 500. In the short term, the higher your beta, the greater the likelihood of losing money. But over very long periods of time, high-beta stocks could end up doing much better than the overall market.
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