Solana Alpha and Beta Analysis

SOL
 Crypto
  

USD 13.30  0.42  3.06%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Solana. It also helps investors analyze the systematic and unsystematic risks associated with investing in Solana over a specified time horizon. Remember, high Solana'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.
Additionally, take a look at Solana Backtesting, Portfolio Optimization, Solana Correlation, Cryptocurrency Center, Solana Volatility, Solana History and analyze Solana Performance.
  
Please note that although Solana 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., NYSE Composite index.) So in this particular case, Solana did 0.77  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 Solana crypto's relative risk over its benchmark. Solana has a beta of 0.94  . Let's try to break down what Solana's beta means in this case. As the market becomes more bullish, returns on owning Solana are expected to decrease slowly. On the other hand, during market turmoil, Solana is expected to outperform it slightly.
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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.

Solana Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Solana market risk premium is the additional return an investor will receive from holding Solana 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 Solana. 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 Solana's performance over market.
α-0.77   β-0.94
90 days against NYA

Solana Price Momentum Analysis

Solana Market Price Analysis

Market price analysis indicators help investors to evaluate how Solana 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 Solana shares will generate the highest return on investment. By understating and applying Solana crypto coin market price indicators, traders can identify Solana position entry and exit signals to maximize returns.

Solana Return and Market Media

The median price of Solana for the period between Tue, Sep 6, 2022 and Mon, Dec 5, 2022 is 30.88 with a coefficient of variation of 31.16. The daily time series for the period is distributed with a sample standard deviation of 8.35, arithmetic mean of 26.79, and mean deviation of 7.37. The Crypto received some media coverage during the period.
 Price Growth (%)  
       Timeline  
1
Fidelity Considering Offering Crypto Trading to Brokerage Cu...09/12/2022
2
BNY Mellon officially launches its crypto custody service - ...10/11/2022

About Solana 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 Solana or other cryptos. Alpha measures the amount that position in Solana 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.

Solana Investors Sentiment

The influence of Solana'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 Solana. 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 Solana's public news can be used to forecast risks associated with investment in Solana. The trend in average sentiment can be used to explain how an investor holding Solana can time the market purely based on public headlines and social activities around Solana. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Solana'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 Solana'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 Solana's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Solana.
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 Solana 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 Solana

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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Align your risk with return expectations

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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
Additionally, take a look at Solana Backtesting, Portfolio Optimization, Solana Correlation, Cryptocurrency Center, Solana Volatility, Solana History and analyze Solana Performance. You can also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Tools for Solana Crypto Coin

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