I have recently been exploring the concept of calculating the total Beta of a portfolio, and I am wondering if any of you do this? Up until now I have used it as a guide (stay away from super high Betas for the most part, don't make your entire portfolio <0.5 Beta defensives, etc.), but have not thought to track the value of the total portfolio beta before.
I am wondering if this could be a good way to draw conclusions like hey, I can afford to take on some risk or oh shoot, I am more risky than I am comfortable with.
I would love to know your guys' insights, and if you do track this, how do you decide what value is good for you?
Leave a Reply