Beta

Beta is the sensitivity of one asset's returns to a benchmark's returns, estimated as the slope of a regression over a selected history. A beta of 1 means the asset moved roughly in line with the benchmark, above 1 means it amplified the benchmark's moves, and below 1 means it moved less.

For a bullion trader, beta helps size and compare exposure. Knowing how strongly silver tends to move relative to gold, or a metal relative to a broader index, informs hedge ratios and position sizing across related instruments.

Beta is not a fixed property of an asset; it depends on the chosen benchmark and window, so the benchmark must be named before the number is interpreted. It summarizes past sensitivity in a sample and does not predict the next move, which is why it is paired with correlation and rolling checks.