Beta

---
name: "beta"
version: "1.0.0"
description: "Beta coefficient reference — CAPM, systematic risk, portfolio sensitivity, regression analysis. Use when measuring stock volatility relative to the market or constructing risk-adjusted portfolios."
author: "BytesAgain"
homepage: "https://bytesagain.com"
source: "https://github.com/bytesagain/ai-skills"
tags: [beta, capm, risk, portfolio, volatility, finance, regression]
category: "finance"
---

# 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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