# Beta

> Beta coefficient reference — CAPM, systematic risk, portfolio sensitivity, regression analysis. Use when measuring stock volatility relative to the market or constructing risk-adjusted portfolios.

- Skill: `bytesagain/beta` (Agent Skill, multi-file: 2 files)
- Install (CLI): `npx skillmds@latest add bytesagain/beta`
- Raw SKILL.md: https://api.skillmd.com/api/skills/bytesagain/beta/raw
- Safety review: PASS (external: skill-scanner PASS, skillspector PASS)
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: bytesagain (https://skillmd.com/u/bytesagain)
- Updated: 2026-08-19
- Page: https://skillmd.com/skills/bytesagain/beta

---


# Beta — Beta Coefficient & Systematic Risk Reference

Quick-reference skill for understanding and applying the beta coefficient in finance, portfolio management, and risk analysis.

## When to Use

- Calculating a stock's beta relative to a benchmark index
- Understanding systematic vs unsystematic risk
- Applying CAPM to estimate expected returns
- Constructing beta-neutral or target-beta portfolios
- Interpreting regression output for asset sensitivity

## Commands

### `intro`

```bash
scripts/script.sh intro
```

Overview of beta — definition, intuition, and role in modern finance.

### `capm`

```bash
scripts/script.sh capm
```

Capital Asset Pricing Model — formula, assumptions, and expected return calculation.

### `calculate`

```bash
scripts/script.sh calculate
```

How to calculate beta — regression method, covariance/variance method, and practical steps.

### `interpret`

```bash
scripts/script.sh interpret
```

Interpreting beta values — what β>1, β=1, β<1, and β<0 mean in practice.

### `types`

```bash
scripts/script.sh types
```

Types of beta — levered vs unlevered, adjusted beta, fundamental beta, bottom-up beta.

### `portfolio`

```bash
scripts/script.sh portfolio
```

Portfolio beta — weighted average calculation, target beta, beta hedging strategies.

### `pitfalls`

```bash
scripts/script.sh pitfalls
```

Common pitfalls — estimation window, benchmark choice, non-stationarity, and survivorship bias.

### `examples`

```bash
scripts/script.sh examples
```

Worked examples with real-world beta scenarios and calculations.

### `help`

```bash
scripts/script.sh help
```

### `version`

```bash
scripts/script.sh version
```

## Configuration

| Variable | Description |
|----------|-------------|
| `BETA_DIR` | Data directory (default: ~/.beta/) |

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