Beta (BETA)
A measure of a security’s volatility in relation to the overall market.
Usage
Use to understand the systematic risk of an asset. A beta of 1.0 indicates the asset moves with the market; >1.0 means it is more volatile, and <1.0 means it is less volatile.
Background
Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. It is used in the Capital Asset Pricing Model (CAPM) to calculate the expected return of an asset based on its beta and expected market returns. — Investopedia
Parameters
timeperiod(default: 30): Lookback period
Formula
[ \beta = \frac{\text{Cov}(R_i, R_m)}{\text{Var}(R_m)} ]