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Beta can be used to indicate the contribution of an individual asset to the market risk of a portfolio when it is added in small quantity. It refers to an asset's non-diversifiable risk, systematic risk, or market risk. Beta is not a measure of idiosyncratic risk. Beta is the hedge ratio of an investment with respect to the stock market.
You’re looking in the rearview mirror: Beta is a backward-looking, singular measure that doesn’t incorporate any other information. Sure, it’s good to reflect on what the past three years ...
A stock’s beta doesn’t tell investors exactly how it is going to trade, but it is a good gauge of how volatile it will be against various market backdrops. Investors looking to leverage their ...
Beta, or the beta coefficient, measures volatility relative to the market and can be used as a risk measure. By definition, the market always has a beta of 1, so betas above 1 are considered more ...
In probability theory and statistics, the beta distribution is a family of continuous probability distributions defined on the interval [0, 1] or (0, 1) in terms of two positive parameters, denoted by alpha (α) and beta (β), that appear as exponents of the variable and its complement to 1, respectively, and control the shape of the distribution.
: the beta of the portfolio. An additional way of understanding the definition can be obtained by rewriting it as: = () If we define the excess ...
In statistics, standardized (regression) coefficients, also called beta coefficients or beta weights, are the estimates resulting from a regression analysis where the underlying data have been standardized so that the variances of dependent and independent variables are equal to 1. [1]
What’s “beta”? It’s the opposite of an Alpha person, so “beta” is slang for someone who’s less assertive (AKA weak). ... It could also be an insult or a way to tell someone to be ...