After a few hours trying to solve this I give up! I need help.
I need to calculate the BETA of an asset with respect to a portfolio that contains this asset. I have the volatility and correlations for all the portfolio, and the allocation.
I could use a formula to calculate the correlation between asset A and the portfolio. Because I could get Beta with the usual formula.
I need a formula, not a method to calculate this based on historical prices.
So this is what I have:
A B C A 1 0.85 0.78 B 0.85 1 0.84 C 0.78 0.84 1
A B C 19.74% 25.76% 31.19%
A B C 25.00% 25.00% 50.00%
Hope you can help me!!