Polkadot Alpha and Beta Analysis

DOT
 Crypto
  

USD 5.47  0.01  0.18%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Polkadot. It also helps investors analyze the systematic and unsystematic risks associated with investing in Polkadot over a specified time horizon. Remember, high Polkadot's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Continue to Polkadot Backtesting, Portfolio Optimization, Polkadot Correlation, Cryptocurrency Center, Polkadot Volatility, Polkadot History and analyze Polkadot Performance.
  
Please note that although Polkadot alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Polkadot did 0.32  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Polkadot crypto's relative risk over its benchmark. Polkadot has a beta of 0.27  . Let's try to break down what Polkadot's beta means in this case. As returns on the market increase, returns on owning Polkadot are expected to decrease at a much lower rate. During the bear market, Polkadot is likely to outperform the market.
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Polkadot Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Polkadot market risk premium is the additional return an investor will receive from holding Polkadot long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Polkadot. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Polkadot's performance over market.
α-0.32   β-0.27
90 days against DJI

Polkadot Price Momentum Analysis

Polkadot Market Price Analysis

Market price analysis indicators help investors to evaluate how Polkadot crypto coin reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Polkadot shares will generate the highest return on investment. By understating and applying Polkadot crypto coin market price indicators, traders can identify Polkadot position entry and exit signals to maximize returns.

Polkadot Return and Market Media

The median price of Polkadot for the period between Thu, Sep 1, 2022 and Wed, Nov 30, 2022 is 6.32 with a coefficient of variation of 9.83. The daily time series for the period is distributed with a sample standard deviation of 0.62, arithmetic mean of 6.32, and mean deviation of 0.48. The Crypto received some media coverage during the period.
 Price Growth (%)  
       Timeline  
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White House Crypto Mining Report Draws Praise From Advocates...09/12/2022

About Polkadot Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Polkadot or other cryptos. Alpha measures the amount that position in Polkadot has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.

Polkadot Investors Sentiment

The influence of Polkadot's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Polkadot. The overall investor sentiment generally increases the direction of a crypto movement in a one-year investment horizon. However, the impact of investor sentiment on the entire crypto markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Polkadot's public news can be used to forecast risks associated with investment in Polkadot. The trend in average sentiment can be used to explain how an investor holding Polkadot can time the market purely based on public headlines and social activities around Polkadot. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Polkadot's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Polkadot's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Polkadot's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Polkadot.
Some cryptocurrency investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. However, unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Polkadot in the overall investment community. So, suppose investors can accurately measure the crypto's market sentiment. In that case, they can use it for their benefit. For example, some tools provided by cryptocurrency exchanges to gauge market sentiment could be utilized to time the market in a somewhat predictable way.

Build Portfolio with Polkadot

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Continue to Polkadot Backtesting, Portfolio Optimization, Polkadot Correlation, Cryptocurrency Center, Polkadot Volatility, Polkadot History and analyze Polkadot Performance. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Tools for Polkadot Crypto Coin

When running Polkadot price analysis, check to measure Polkadot's coin volatility and technical momentum indicators. We have many different tools that can be utilized to determine how healthy Polkadot is operating at the current time. Most of Polkadot's value examination focuses on studying past and present price actions to predict the probability of Polkadot's future price movements. You can analyze the coin against its peers and the financial market as a whole to determine factors that move Polkadot's coin price. Additionally, you may evaluate how adding Polkadot to your portfolios can decrease your overall portfolio volatility.
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