Downside beta

Downside beta is a financial metric that measures the sensitivity of an asset's return to negative movements in the return of a benchmark or market index. It specifically focuses on the risk of losing value when the market declines, rather than overall volatility during both up and down markets. While traditional beta assesses the relationship between an asset's price movements and those of the market as a whole—including both positive and negative movements—downside beta only considers instances when the market is performing poorly.