Beta is a measure of of a portfolio's volatility and systematic risk compared to the overall to the overall market.
A Beta of 1 indicates that the portfolio's price moves in-line with the market.
A Beta of greater than 1 means the portfolio is more volatile than the market.
A Beta of less than 1 means the portfolio is less volatile than the market.
Beta is useful for assessing the risk level of an investment relative to a given benchmark, helping you understand how much general market risk you are taking on.
By knowing the Beta of your investments, you can make informed decisions about risk management, portfolio diversification, and aligning your investments with your risk tolerance and financial goals.
Significant measurements for Beta are best assessed over at least 3-years or more. Assessments for less time periods are possible to calculate, though the effect of short-term market volatility can produce less reliable results for decisions-making purposes.