Beta

Beta is the definitive clean build of the beta statistic as a chart tool: bar-to-bar returns of the symbol and a chosen benchmark are regressed over a rolling window, and the slope is plotted with a gradient fill, a dashed Market Beta (1.0) line, a dotted Zero Level, and an optional shaded band across the defensive 0–1 region. A dashboard adds the companion numbers a raw slope needs: correlation, R², and a stability read that flags when the estimate drifts from its own average.

How to Trade the Beta?

• Beta above 1: benchmark moves arrive amplified, an aggressive profile arguing for smaller size when the index is volatile.
• Beta inside the shaded 0–1 band: moves arrive damped, the defensive region where index-level noise matters less.
• Beta below 0: the symbol has leaned against the benchmark. Hedge arithmetic reverses, and zero-line crosses fire their own alerts.
• Stability says Drifting: the reading has moved more than one sigma from its window mean; re-check any beta-scaled hedge before trusting the number.

Beta Settings

• Benchmark (default SP:SPX): the index returns are regressed against; crypto workflows typically substitute a Bitcoin ticker.
• Window Length (default 252): rolling estimation window, roughly a trading year of daily bars; shorter tracks regime shifts faster but drifts more.
• Source (default close): price series for both return streams.
• Return Type (default Simple): simple percent returns, or log returns when compounding consistency matters.
• Show Dashboard (default on) with location and size.
• Style: beta color, Gradient Fill (default on), reference line colors, and Shade Defensive Band (0-1) (default on).

Frequently Asked Questions

What is the difference between Beta and Alpha?

How should the Window Length be chosen?

Why does the dashboard show correlation next to beta?