CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is betavexity?


Often used in the world of investment analysis, betavexity is the term used for a type of convexity – an important topic in economics based around the values of convex geometry. It is important to note that betavexity relates specifically to the beta coefficient of a long tailed investment.

Where have you heard about betavexity?

If you’re familiar with carrying out detailed, mathematics based analysis of investments, then there is a high chance that you’re aware of the concept of betavexity. There are also a number of studies and methods related to the use of convexity, and convex analysis is typically used when analysing textbook economics.

What you need to know about betavexity.

The beta coefficient is a marker that indicates whether an investment is more or less volatile than the market as a whole, and betavexity helps to analyse the health of portfolios that have a similar nature to indices that feature financial instruments with shorter maturities – meaning the financial instruments will end or need to be renewed after a relatively short period.

In this way, betavexity has similarities with bond convexity and gamma, which are analysis tools used with financial products such as options and bonds.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading