OPEN-SOURCE SCRIPT
Multi Beta Coefficient Table
Updated
!CREDITS TO ORIGINAL CREATOR OF THE BETA INDICATOR @NianiaFrania🐸| Crypto Captain!
I modified the code to include 7 benchmarks and a table with all the values.
The Multi Beta Coefficient Table indicator calculates the beta coefficient for a given asset compared to multiple benchmarks. The beta coefficient measures the volatility of an asset in relation to the volatility of a benchmark. A beta coefficient greater than 1 indicates that the asset is more volatile than the benchmark, while a beta coefficient less than 1 suggests lower volatility compared to the benchmark.
How it Works:
Input Parameters:
Beta measurement length on Benchmark #1 (LENGTH): This parameter determines the length of the period over which the beta coefficient is calculated for the first benchmark. A longer period provides a broader perspective on the asset's volatility relative to the benchmark.
Calculations:
The indicator retrieves price data for the asset and multiple benchmarks.
It calculates the percentage return for each security over the specified period using the return_percent function.
Moving averages (ta.sma) are calculated for both the asset and each benchmark based on the specified length.
Variance and covariance are computed to determine the beta coefficient for each benchmark.
Visualization:
The beta coefficients for each benchmark are plotted on the chart with different colors for clarity.
Additionally, a table is displayed on the chart's right side, showing the beta coefficients for each benchmark.
Label Display:
If enabled, labels are displayed next to each plotted beta coefficient, indicating the corresponding benchmark.
Input Parameter: LENGTH:
The LENGTH parameter determines the number of bars used in calculating the moving averages and other statistical measures required for beta coefficient calculation. A longer length provides a more stable and reliable estimate of the asset's volatility relative to the benchmark over time. Traders and analysts can adjust this parameter based on their specific analysis needs and trading strategies.
Usage:
Traders and investors can use the Multi Beta Coefficient Table indicator to assess the risk and volatility of an asset compared to various benchmarks. By analyzing the beta coefficients, they can make informed decisions about portfolio diversification, risk management, and investment strategies.
I modified the code to include 7 benchmarks and a table with all the values.
The Multi Beta Coefficient Table indicator calculates the beta coefficient for a given asset compared to multiple benchmarks. The beta coefficient measures the volatility of an asset in relation to the volatility of a benchmark. A beta coefficient greater than 1 indicates that the asset is more volatile than the benchmark, while a beta coefficient less than 1 suggests lower volatility compared to the benchmark.
How it Works:
Input Parameters:
Beta measurement length on Benchmark #1 (LENGTH): This parameter determines the length of the period over which the beta coefficient is calculated for the first benchmark. A longer period provides a broader perspective on the asset's volatility relative to the benchmark.
Calculations:
The indicator retrieves price data for the asset and multiple benchmarks.
It calculates the percentage return for each security over the specified period using the return_percent function.
Moving averages (ta.sma) are calculated for both the asset and each benchmark based on the specified length.
Variance and covariance are computed to determine the beta coefficient for each benchmark.
Visualization:
The beta coefficients for each benchmark are plotted on the chart with different colors for clarity.
Additionally, a table is displayed on the chart's right side, showing the beta coefficients for each benchmark.
Label Display:
If enabled, labels are displayed next to each plotted beta coefficient, indicating the corresponding benchmark.
Input Parameter: LENGTH:
The LENGTH parameter determines the number of bars used in calculating the moving averages and other statistical measures required for beta coefficient calculation. A longer length provides a more stable and reliable estimate of the asset's volatility relative to the benchmark over time. Traders and analysts can adjust this parameter based on their specific analysis needs and trading strategies.
Usage:
Traders and investors can use the Multi Beta Coefficient Table indicator to assess the risk and volatility of an asset compared to various benchmarks. By analyzing the beta coefficients, they can make informed decisions about portfolio diversification, risk management, and investment strategies.
Release Notes
Plots can now be turned on/off Label for Benchmark7 is not the name of the asset selected
Release Notes
.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
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