What is beta in investing?
Beta measures how strongly something tends to move compared with a benchmark, such as a market index.
A beta of 1 means it tends to move about as much as the benchmark. A beta of 2 means about twice as much, in both directions. It is based on past prices, so it can change.
Example
Stocks that move with Bitcoin
If a stock has a beta of 2 against Bitcoin and Bitcoin rises 5%, the stock has tended to rise about 10%.
General information only, not financial advice. Investing can lose you money.