Skip to main content
Glama

Measure betas from prices

valuation_beta
Read-onlyIdempotent

Betas of stocks against an index from closing prices the business gives (from its own data service): returns on the dates both have, or the last close of each week or month; the raw beta by least squares, the Blume-adjusted beta, alpha, R squared, standard error and t-statistic, whether it is significant at 95%, and the unlevered beta when debt and equity are given. Median and mean across the stocks. Free.

Tool call template

Replace each placeholder with a value matching the input schema. Only required parameters are included; add optional parameters as needed.

{
  "id": 1,
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "arguments": {
      "index": "<index>",
      "stocks": "<stocks>"
    },
    "name": "valuation_beta"
  }
}

Input Schema

NameRequiredDescriptionDefault
indexYes
stocksYes
tax_rateNoFor unlevering, where a stock gives none. A decimal: 0.09 is 9%.
frequencyNoas_given
adjustmentNoblume
releveringNohamada

Schema Changelog

Changes observed during successful MCP inspections.

  1. First observed

TDQS

A3.6/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already cover the safe, read-only, idempotent nature. The description adds useful context: it specifies that prices come from the business's own data service, lists all computed outputs (raw beta, Blume-adjusted beta, alpha, R², SE, t-stat, significance, unlevered beta), and notes that results include median and mean. It also mentions 'Free.' as a cost trait.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is front-loaded with the core purpose and uses semicolons to list outputs efficiently. It is somewhat dense and could be better structured, but every sentence contributes information without redundancy.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given no output schema, the description adequately explains what the tool returns. It covers the main inputs and computation options, though it omits constraints like max 20 stocks or min 4 price points (these are in the schema). An agent can call it correctly, but some edge details rely on schema inspection.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

With only 17% schema description coverage, the description compensates by explaining frequency behavior ('returns on the dates both have, or the last close of each week or month') and adjustment ('Blume-adjusted beta'). It also links debt/equity inputs to unlevered beta. However, it does not explain the relevering enum (hamada vs harris_pringle) or the global tax_rate parameter beyond what the schema already says.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool computes betas of stocks against an index from provided closing prices. It is specific about the resource and calculation, though it does not explicitly differentiate from sibling valuation tools.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines2/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description explains what the tool computes but gives no guidance on when to use it versus alternatives like valuation_wacc or valuation_benchmark. It implies you use it when you have price data, but lacks explicit when/when-not conditions.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

Try in Browser

Glama MCP Gateway

Add one secure layer between your agents and this server.

Resources