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.
Worked example: a coin correlated 0.8 with Bitcoin, with 100% annualized volatility against BTC's 60%, has a beta of 0.8 × (1.00 ÷ 0.60) ≈ 1.33 — so if BTC falls 10%, this coin would typically fall about 13%.
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. Informational only, not investment advice.
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Join ISO 20022 investorsRelated Terms
Correlation vs BTC
Correlation vs BTC is the Pearson correlation between a coin's returns and Bitcoin's, from −1 (perfectly opposite) to +1 (perfectly in step), measuring how closely the two move together.
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: 2026-07-03