Beta vs BTC
Risk MetricBeta vs BTC measures how much a coin moves relative to Bitcoin — a beta of 1.2 means the coin typically moves 20% more than BTC in both directions.
Beta is a standard portfolio theory metric adapted here for crypto: instead of measuring a stock's movement relative to the S&P 500, it measures a coin's movement relative to Bitcoin. Beta is calculated as covariance(coin returns, BTC returns) / variance(BTC returns).
A beta of 1.0 means the coin moves in exact proportion to BTC. Beta > 1.0 means the coin is more volatile than BTC (amplified moves). Beta < 1.0 means partial insulation from BTC swings. Beta near 0 means essentially no relationship. Negative beta is theoretically possible but extremely rare in crypto.
For portfolio construction, lower-beta ISO 20022 coins (historically HBAR and XDC have shown beta around 0.8-1.0, while XRP, ADA, and XLM often show 1.2-1.5) provide partial diversification from Bitcoin's dominant market moves. However, in severe Bitcoin drawdowns, high correlation tends to rise and beta metrics become unreliable.
Crypto Relevance
Beta vs BTC is most useful when comparing ISO 20022 coins in the context of a Bitcoin-heavy portfolio — a lower-beta coin like HBAR theoretically dampens portfolio volatility when BTC corrects sharply.
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Join ISO 20022 investorsRelated Terms
Sharpe Ratio
Sharpe Ratio is a measure of risk-adjusted return calculated as (annualized return − risk-free rate) ÷ annualized volatility.
Annualized Volatility (Sigma)
Annualized Volatility (sigma) measures how much a price fluctuates over a year, calculated as the standard deviation of daily log returns scaled by √365.
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Last reviewed: 2026-05-17