Upside Beta

Upside beta measures the sensitivity of an asset’s returns to positive market movements. It indicates how much an asset is likely to gain relative to the overall market when the market is rising. A higher upside beta suggests that the asset tends to outperform the market during bullish conditions, while a lower upside beta indicates that it gains less than the market during upward trends.

Example

An asset with an upside beta of 1.5 tends to increase by 1.5% for every 1% gain in the overall market during rising periods, meaning it is more sensitive to positive market movements.