What is Beta?
Beta measures a stock's volatility relative to the market (typically the S&P 500). A beta of 1.0 moves with the market; 1.5 is 50% more volatile; 0.5 is half as volatile. High-beta stocks amplify both gains and losses — useful information for sizing positions appropriately.
Formula
Beta = Covariance(Stock, Market) ÷ Variance(Market)
How TopTier Strategy uses Beta
Beta is one input we use to flag whether a position will dominate or be dominated by broader market moves.
Related Glossary Terms
Other concepts in the Other pillar.
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