Beta — Beta Coefficient & Systematic Risk Reference
Quick-reference skill for understanding and applying the beta coefficient in finance, portfolio management, and risk analysis.
When to Use
- Calculating a stock's beta relative to a benchmark index
- Understanding systematic vs unsystematic risk
- Applying CAPM to estimate expected returns
- Constructing beta-neutral or target-beta portfolios
- Interpreting regression output for asset sensitivity
Commands
intro
scripts/script.sh intro
Overview of beta — definition, intuition, and role in modern finance.
capm
scripts/script.sh capm
Capital Asset Pricing Model — formula, assumptions, and expected return calculation.
calculate
scripts/script.sh calculate
How to calculate beta — regression method, covariance/variance method, and practical steps.
interpret
scripts/script.sh interpret
Interpreting beta values — what β>1, β=1, β<1, and β<0 mean in practice.
types
scripts/script.sh types
Types of beta — levered vs unlevered, adjusted beta, fundamental beta, bottom-up beta.
portfolio
scripts/script.sh portfolio
Portfolio beta — weighted average calculation, target beta, beta hedging strategies.
pitfalls
scripts/script.sh pitfalls
Common pitfalls — estimation window, benchmark choice, non-stationarity, and survivorship bias.
examples
scripts/script.sh examples
Worked examples with real-world beta scenarios and calculations.
help
scripts/script.sh help
version
scripts/script.sh version
Configuration
| Variable | Description |
|---|---|
BETA_DIR |
Data directory (default: ~/.beta/) |
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