Portfolio Beta

Your portfolio beta is a good way to manage risk because it quantifies the direction of your portfolio's tilt. Learn how to use portfolio beta to balance your portfolio.
Portfolio Beta
Kirk Du Plessis
Apr 7, 2021

Just as we are able to calculate the individual data of any stock out there, we can also calculate a complete portfolio beta. Later on, this will help us in understanding if our portfolio is tilted one way or another and if we need to make adjustments with particular strategies to rebalance ourselves.

No tags found.
Next lesson
Beta Weighting Your Portfolio
Beta weighting your portfolio gives you a sense of how bullish or bearish your portfolio is positioned. By balancing your portfolio with beta, you can know what types of positions to add to stay neutral.

Trade smarter with automation