Beta Portfolio Calculator

Stock 1:
Weight:
Beta:

Stock 2:
Weight:
Beta:

Stock 3:
Weight:
Beta:

Calculate Beta

Beta Portfolio Calculator

The Beta Portfolio Calculator is a tool used to determine the beta value of a portfolio, which measures the portfolio’s sensitivity to market movements compared to a benchmark index.

Formula

The formula for calculating the beta of a portfolio involves analyzing the individual asset weights and their corresponding betas. Each asset’s beta is multiplied by its weight in the portfolio, and the results are summed to obtain the portfolio’s beta.

Portfolio Beta = (Weight of Asset 1 * Beta of Asset 1) + (Weight of Asset 2 * Beta of Asset 2) + … + (Weight of Asset n * Beta of Asset n)

Example

Suppose a portfolio consists of two assets: Asset A with a weight of 60% and a beta of 1.2, and Asset B with a weight of 40% and a beta of 0.8. Using the formula, the portfolio’s beta can be calculated as follows:

Portfolio Beta = (0.6 * 1.2) + (0.4 * 0.8) = 0.96