A message from our CEO about the future of Stack Overflow and Stack Exchange. Read now.

Portfolio beta is a function of market vol, portfolio vol and correlation between market and portfolio; so correlation is indeed the only free variable. (But if you have complete control over the portfolio-construction process, you might as well target beta and then scale the weights so that you meet your volatility target.) To control correlation, you'll ...

Only top voted, non community-wiki answers of a minimum length are eligible