Beta Matrix

What it means: A Beta matrix compares how much each asset responds to changes in a reference (usually the market).

In plain terms: It’s like a “responsiveness chart” showing which investments are sensitive to market mood.

Example: Shares might have a Beta of 1.2, meaning they move 20% more than the market. Bonds, with 0.3, move much less.

Bonds vs Equities vs Crypto:

• Bonds: Low Beta, calm and steady.
• Equities: Moderate Beta, track market but with some spark.
• Crypto: Often massive Beta, exaggerated reactions both up and down.

How to use it: Combine this with the correlation matrix for a rounded view of risk behaviour. A high Beta investment with high correlation increases overall portfolio sensitivity. If your portfolio’s average Beta starts creeping up, that’s a sign to reassess risk exposure.