Concept · Stock-level risk (bottom-up)
Beta (β)
The slope of an asset's return regressed on a factor; how much the asset moves per unit factor move.
In depth
Estimated hierarchically — market beta (L1), then sector beta orthogonal to market (L2), then subsector beta orthogonal to both (L3). Each is the incremental sensitivity, not the raw correlation.
Formula
β_i = Cov(r_i, f) / Var(f)
Compute it with the API
GET /api/metrics/{ticker}
# pip install riskmodels-py
client.get_metrics("NVDA")In the methodology
The three levels: L1, L2, L3 →Referenced by (5)
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