Beta vs Benchmark

What it means: Measures how "sensitive" your portfolio is to market moves.

In plain terms: Is your portfolio a "magnifier" (Beta > 1) or a "dampener" (Beta < 1)?

Example: A Beta of 1.5 means if the market moves 10%, your portfolio moves 15%.

• Bonds: Very low Beta; they don't move much when the stock market moves.
• Equities: Beta usually hovers around 1.0 (the market average).
• Crypto: Altcoins typically have a Beta > 1 relative to Bitcoin, magnifying its moves.

How to use it: Use this to dial your risk up or down. If you think a bull market is coming, you want a higher Beta.