Keyboard shortcuts

Press or to navigate between chapters

Press S or / to search in the book

Press ? to show this help

Press Esc to hide this help

Beta (β)

Strongest color around 2.2

Beta — color strongest near 2.2

β measures how much this coin amplifies Bitcoin’s moves, over the same window as R. The color gets stronger the closer β sits to 2.2, and fades out toward 1 and below.

Takeaway: β near 1 means “moves like BTC.” The highlight is reserved for coins amplifying well past that.


What

β is how much this coin’s moves are magnified versus Bitcoin’s, using the same aligned returns as R. β ≈ 1 moves like BTC, above 1 amplifies, below 1 dampens.

So what

A high-β symbol turns an ordinary BTC day into a bigger move on this ticker — and an ordinary BTC pullback into a bigger pullback too. β doesn’t care about direction, only magnitude.

Now what

High β raises both the reward and the risk of anything BTC does next — position size should account for that amplification either way. Check R alongside it: high β with low R means the amplification claim doesn’t actually apply right now, since the coin isn’t tracking BTC closely enough for β to mean much.