In the field of Finance, a Beta Coefficient refers to a tool that effectively measures the volatility of a specific asset, as it is related to the volatility of the overall market or a particular portfolio.
Beta can be used to calculate the expected Return of Investment (ROI) of an asset with relation to its own volatility within the market. As this is the case, Beta is not necessarily just used to measure the risks of investing in a particular asset; it actually measures the risks that the investment would possibly add to an already existing portfolio.
Upon comparison of a certain financial instrument against the market, the resulting Beta would likely be higher or lower than 1. What a Beta higher than 1 means is that the asset is not only volatile, but highly correlated with the market. If it is the opposite, it is possible that an investment has lower volatility compared to the market.