PORTFOLIO RISK
Beta
Measures linear sensitivity of an asset's returns to a selected market benchmark.
Formula
β = Cov(R_i,R_m)/Var(R_m)
Variables: Asset returns; market returns
What it means
Measures linear sensitivity of an asset's returns to a selected market benchmark.
Example
Beta 1.2 indicates historically amplified benchmark sensitivity under the sample/model used.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.