Beta
Beta estimates how sensitive an asset's or portfolio's returns are to a chosen benchmark's returns. A beta of one indicates similar estimated sensitivity, while negative beta indicates an opposite relationship; beta depends on the benchmark, sample period and model.
In a hypothetical model with beta 1.2, a 1% benchmark rise corresponds to a 1.2% benchmark-related return component. Actual returns can differ because of other influences.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure