Beta measures how much an asset moves relative to a benchmark (like BTC or S&P 500). Beta of 1.5 means when the market goes up 10%, your asset tends to go up 15%.

How is Beta calculated?

Beta = Covariance(Asset, Market) / Variance(Market). It's the slope of the regression line between asset returns and market returns.

What does Beta = 1 mean?

Beta = 1 means the asset moves in sync with the market. If BTC goes up 10%, your asset also tends to go up ~10%. Most altcoins have beta > 1 vs BTC.

What benchmark for crypto?

Usually BTC as the 'market'. Some use total crypto market cap. For comparing crypto to traditional markets, use S&P 500 or a broad index.

High Beta good or bad?

High beta = more volatile than market. Good in bull markets (bigger gains), bad in bear markets (bigger losses). Depends on your risk tolerance.

Can Beta be negative?

Yes, if the asset moves opposite to the market. Rare in crypto - most alts are positively correlated with BTC. Some hedges or inverse ETFs have negative beta.

Correlation measures direction (-1 to 1). Beta measures magnitude. High correlation + high volatility = high beta. They're related but different.

Weighted average of individual betas. If 50% in Beta=1.2 asset and 50% in Beta=0.8 asset, portfolio beta = 1.0.

Beta Calculator

Measure systematic risk vs market benchmark

Beta (β) measures sensitivity to market movements. β=1 moves with market, β>1 amplifies moves, β<1 dampens moves, β<0 moves opposite.

Returns Data

Enter periodic returns (%) for your asset and the benchmark (e.g., BTC)

Asset Returns (%)

Benchmark Returns (%) - e.g. BTC

β = Cov(Asset, Market) / Var(Market) = 0 / 0 = 0.00

Results

Beta Coefficient

Correlation:-

R-squared:-

Data Points:-

InverseDefensiveMarketAggressive

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Portfolio Beta

Calculate weighted average beta of your portfolio

Asset	Beta	Weight (%)	Contribution

Add assets to calculate portfolio beta

Portfolio Beta:-

ETH vs BTC

~1.2

Typical

SOL vs BTC

~1.5

Typical

Stablecoins

No correlation

BTC vs S&P

~1.0

Recent years

Beta FAQ

My altcoin has beta 2.5 vs BTC

Means when BTC goes up 10%, your altcoin tends to go up 25%. Great in bull runs, brutal in crashes. Classic high-beta behavior.

Why use BTC as benchmark?

BTC is crypto's "market index" - most liquid, largest cap, drives sentiment. Alt performance is often "BTC + extra risk premium (or loss)".

Can I lower portfolio beta?

Add low-beta assets: more BTC (beta=1), stablecoins (beta≈0), or uncorrelated assets. Reduce high-beta altcoins.

Beta changes over time?

Yes, significantly. Bull market betas differ from bear market. Recent data matters more. Recalculate periodically.

What's R-squared mean?

How much of asset's movement is explained by the benchmark. R²=0.8 means 80% of moves correlate with market. Low R² = beta less meaningful.

Target beta for my portfolio?

Depends on risk tolerance. Conservative: 0.5-0.8. Moderate: 1.0. Aggressive: 1.2-1.5. Know what you're signing up for.

Beta Calculator

Returns Data

Results

Portfolio Beta

Beta FAQ

My altcoin has beta 2.5 vs BTC

Why use BTC as benchmark?

Can I lower portfolio beta?

Beta changes over time?

What's R-squared mean?

Target beta for my portfolio?

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Beta Calculator

Returns Data

Results

Portfolio Beta

Beta FAQ

My altcoin has beta 2.5 vs BTC

Why use BTC as benchmark?

Can I lower portfolio beta?

Beta changes over time?

What's R-squared mean?

Target beta for my portfolio?

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💬 User Comments

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