Beta

Beta is a statistic that shows how well the returns of a particular asset track those of a particular market. It also indicates how volatile the asset is. The beta of the market volatility index is 1.0

A beta more than 1.0 could specify an investment moves with the market and/or is more sensitive than the market. Accumulating an investment with a beta greater than 1.0 to a widely distributed portfolio should increase the portfolio’s hazard.

A beta of less than 1.0 specifies that only some of its returns are due to overall market movements. Hence, accumulating an investment with a beta less than 1.0 to an effectively distributed portfolio should decrease the portfolio’s hazard.

A beta of zero signifies that an investment’s returns are self-regulating to market returns.

A beta of -1.0 indicates a 100% negative connection between the investment and the market.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.