A measure of beta that reflects a stock‘s price movement during an upward trend. In this sense, it is a one-direction component of beta, as beta measures the volatility of a stock price in relation to the market as a whole (the dual beta). In calculation, upside beta is the product of upside correlation and the ratio of upside asset-specific volatility (stock volatility) to upside market-wide volatility.

Upside beta is the adjusted amount by which a stock (or broadly, a tradable asset) tends to increase relative to the whole market (as measured by the performance of an index or benchmark). The adjusted, relative amount of change (upside volatility) is calculated only on days when the asset price exhibits an upward movement.

For a convertible, it is a measure of the convertible’s price sensitivity to changes in the overall stock market (which does not include any dividend element).