Beta Coefficient

Overview

This indicator evaluates a cryptocurrency's volatility relative to Bitcoin's. It offers insights into risk and price fluctuations of the analyzed cryptocurrency compared to Bitcoin, which often serves as a benchmark in the crypto market.

The indicator calculates the standard deviation of the daily returns for both the asset being analyzed and Bitcoin over a certain period. The relative volatility is then calculated by dividing the standard deviation of the assets returns by the standard deviation of Bitcoin's returns.

💡 How can I use it?

This indicator provides a measure of a cryptocurrency's risk level compared to Bitcoin. A higher relative volatility indicates that the cryptocurrency's price fluctuates more than Bitcoin's, implying a higher risk. Conversely, a lower relative volatility suggests the cryptocurrency is less risky than Bitcoin.