Rolling Beta

What it means: Rolling Beta shows how an asset’s sensitivity to the market changes over time.

In plain terms: It’s useful for spotting shifts in risk behaviour, maybe your steady share is becoming more volatile lately.

Example: A company could have Beta 0.8 in normal times but shoot up to 1.5 in a bull market.

Bonds vs Equities vs Crypto:

• Bonds: Beta barely moves.
• Equities: Beta rises or falls with volatility.
• Crypto: Beta jumps all over the place, unpredictable yet revealing.

How to use it: Rolling Beta is best used with rolling correlation to identify evolving market dynamics. If you see Beta climbing steadily, your asset is becoming more “market-like” and potentially riskier. Keep a close eye on this when markets shift, it could signal a need to rebalance or reduce exposure.