Beta Weighting Your Portfolio to a Symbol

Beta weighting allows you to assess all of your positions relative to a move in the market (when weighted to SPY) or a specific symbol. In other words, it tells you the theoretical dollar move of your portfolio or position given a $1 move up in the underlying that you are beta-weighting to.

When your beta-weighted delta is positive, then, in theory, your portfolio or position is positively correlated to the underlying. However, when your beta-weighted delta is negative, then it indicates that your portfolio or position is negatively correlated the underlying. 

Where can I see my beta-weighted delta?

You can view your portfolio beta-weighted delta along the top of the platform where account details list. To learn how to customize your account details, please click here.

Additionally, you can see your beta-weighted delta per position by adding the beta-weighted delta column. To learn how to add columns to your Positions tab, please click here.

How do I beta-weight my portfolio to a symbol?

By default, the platform beta-weights your portfolio and positions to SPY. However, if you would like to beta-weight to a different underlying, then please follow the instructions below:

  1. Head to the Positions tab and click the gear inside the beta-weighted to enter the Platform Settings menu.
  2. After clicking the gear, it will take you the Settings menu. You can change the beta-weighted symbol by entering a symbol and pressing enter.
  3. Once complete, click OK in the bottom right-hand corner of the Settings menu. To revert back to the default (SPY), then click Reset to SPY.