What is Beta?
How much an asset moves when the market moves: 1.5 means 50% more than the benchmark.
Beta is the slope of an asset's returns against a benchmark's, usually Bitcoin for altcoins or the S&P for crypto as a whole. High beta amplifies both directions.
It is a feature the direction model uses: a high-beta coin gets different treatment from one that barely tracks the market.
Related terms
- CorrelationMacro
How closely two assets move together, from −1 to +1, measured over a window.
- Risk-on / risk-offMacro
Whether investors are adding or removing risk; crypto usually trades as a risk asset.
- VolatilityTechnical analysis
How much a price swings, usually annualised from recent returns; the core input to any range.