Hedging strategies often rely on "beta". In the past month, ESG-focused portfolios trimmed high-beta holdings to navigate choppy climate policy debates impacting renewable infrastructure stocks. Peer-to-Peer (P2P) : This model allows direct connections between lenders and borrowers. For instance, while mainstream assets like ETH or USDT are handled in P2C pools, tokens outside of those pools, such as popular memecoins (SHIB, DOGE), can be exchanged here under custom terms. Lenders and borrowers can negotiate their own rates and conditions, adding flexibility beyond the pooled model. Different asset groups might use different benchmarks to determine beta. Benchmarks vary by country and can also vary according to asset type (e.g., corporate bonds may have a different benchmark from stocks). In the United States, most stocks and funds use the S&P 500 as their benchmark, as the index represents a broad cross section of the U.S. stock market. "Beta in finance" is integral to CAPM (Capital Asset Pricing Model) for estimating expected returns. As of current April earnings season, retail sector betas are trending near 0.90, showing muted market sensitivity as consumer spending cools.
