ApeCoin Volatility

APE
 Crypto
  

USD 5.66  1.00  21.46%   

ApeCoin appears to be unreasonably risky, given 3 months investment horizon. ApeCoin secures Sharpe Ratio (or Efficiency) of 0.0885, which signifies that digital coin had 0.0885% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a crypto is to use all available market data together with crypto-specific technical indicators that cannot be diversified away. By analyzing ApeCoin technical indicators you can presently evaluate if the expected return of 0.66% is justified by implied risk. Please makes use of ApeCoin's mean deviation of 5.15, and Risk Adjusted Performance of 0.1496 to double-check if our risk estimates are consistent with your expectations.
  
ApeCoin Crypto Coin volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of ApeCoin daily returns, and it is calculated using variance and standard deviation. We also use ApeCoin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ApeCoin volatility.

30 Days Market Risk

Unreasonably risky

Chance of Distress

Significantly High

30 Days Economic Sensitivity

Responds to the market
Since volatility provides cryptocurrency investors with entry points to take advantage of coin prices, investors in projects such as ApeCoin can benefit from it. Downward market volatility can be a perfect environment for traders who play the long game. Here, they may buy additional ApeCoin shares at lower prices. For example, an investor can purchase ApeCoin coin that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of ApeCoin's crypto rise, investors can sell out and invest the proceeds in other coins with better opportunities. Investing in volatile markets will allow investors in evolving Defi or crypto projects such as ApeCoin to generate better long-term returns.

Moving together with ApeCoin

+0.81XRPXRPPairCorr
+0.72SOLSolanaPairCorr
+0.65LINKChainlinkPairCorr
+0.65MATICPolygonPairCorr

ApeCoin Market Sensitivity And Downside Risk

ApeCoin's beta coefficient measures the volatility of ApeCoin crypto coin compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents ApeCoin crypto coin's returns against your selected market. In other words, ApeCoin's beta of 1.2 provides an investor with an approximation of how much risk ApeCoin crypto coin can potentially add to one of your existing portfolios.
ApeCoin is displaying above-average volatility over the selected time horizon. Investors should scrutinize ApeCoin independently to ensure intended cryptocurrency market timing strategies are aligned with expectations about ApeCoin volatility. Please note that many cryptocurrencies are speculative and subject to artificial price hype. Ensure you understand the upside potential and downside risk of investing in ApeCoin. We encourage all cryptocurrency investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before the public announcements. Please also check the biographies and work history of current and past project contributors before investing in high-volatility crypto coins. You can indeed make money on ApeCoin if you perfectly time your entry and exit. However, remember that cryptos that have been the subject of artificial hype usually cannot maintain its increased price for more than a few days. The price of a promoted high-volatility instrument will almost always revert. The only way to increase coin holder value is through legitimate performance analysis backed up by solid fundamentals of the project the coin represents. Understanding different market volatility trends often help investors time the market. Properly using volatility indicators enable traders to measure ApeCoin's crypto coin risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ApeCoin's price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different cryptos as prices fall or investing in DeFi projects.
3 Months Beta |Analyze ApeCoin Demand Trend
Check current 90 days ApeCoin correlation with market (DOW)

ApeCoin Beta

    
  1.2  
ApeCoin standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  7.46  
It is essential to understand the difference between upside risk (as represented by ApeCoin's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ApeCoin's daily returns or price. Since the actual investment returns on holding a position in apecoin crypto coin tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in ApeCoin.

ApeCoin Crypto Coin Volatility Analysis

Volatility refers to the frequency at which ApeCoin crypto price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ApeCoin's price changes. Investors will then calculate the volatility of ApeCoin's crypto coin to predict their future moves. A crypto that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A crypto coin with relatively stable price changes has low volatility. A highly volatile crypto is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of ApeCoin's volatility:

Historical Volatility

This type of crypto volatility measures ApeCoin's fluctuations based on previous trends. It's commonly used to predict ApeCoin's future behavior based on its past. However, it cannot conclusively determine the future direction of the crypto coin.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for ApeCoin's current market price. This means that the crypto will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on ApeCoin's to be redeemed at a future date.
Transformation
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ApeCoin Projected Return Density Against Market

Assuming the 90 days trading horizon the crypto coin has the beta coefficient of 1.2022 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, ApeCoin will likely underperform.
Most traded cryptocurrencies are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or coin-specific or project-specific) risk. Unsystematic risk is the risk that events specific to ApeCoin project will adversely affect the coin's price. This type of risk can be diversified away by owning several different digital assets on different exchanges whose coin prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ApeCoin's price will be affected by overall cryptocurrency market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ApeCoin crypto's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 1.0236, implying that it can generate a 1.02 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
ApeCoin's volatility of a cryptocurrency is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how apecoin crypto coin's price will differ from the historical average after some time. There is a big difference when you buy ApeCoin from a government-approved cryptocurrency exchange like Coinbase or a marketplace managed by a foreign entity. Using a local, USA-based marketplace will be less exposed to price manipulation. However, just like with stock markets, cryptocurrencies fluctuate because it is influenced by constant media hype, basic supply and demand laws, investor sentiments, and government regulations. These factors work together to add to ApeCoin's price volatility.

ApeCoin Crypto Coin Risk Measures

Most traded cryptocurrencies are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or coin-specific or project-specific) risk. Unsystematic risk is the risk that events specific to ApeCoin project will adversely affect the coin's price. This type of risk can be diversified away by owning several different digital assets on different exchanges whose coin prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ApeCoin's price will be affected by overall cryptocurrency market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ApeCoin crypto's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Assuming the 90 days trading horizon the coefficient of variation of ApeCoin is 1130.56. The daily returns are distributed with a variance of 55.71 and standard deviation of 7.46. The mean deviation of ApeCoin is currently at 4.89. For similar time horizon, the selected benchmark (DOW) has volatility of 1.
α
Alpha over DOW
1.02
β
Beta against DOW1.20
σ
Overall volatility
7.46
Ir
Information ratio 0.13

ApeCoin Crypto Coin Return Volatility

ApeCoin historical daily return volatility represents how much of ApeCoin crypto's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. Keep in mind that cryptocurrencies such as ApeCoin have only been around for a short time and are still in the price discovery phase. This means that prices will continue to change as investors and governments work through the initial concerns until prices stabilize, provided a stable point can be reached. ApeCoin assumes 7.4638% volatility of returns over the 90 days investment horizon. By contrast, DOW inherits 1.1296% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About ApeCoin Volatility

Volatility is a rate at which the price of ApeCoin or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of ApeCoin may increase or decrease. In other words, similar to ApeCoin's beta indicator, it measures the risk of ApeCoin and helps estimate the fluctuations that may happen in a short period of time. So if prices of ApeCoin fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

ApeCoin Investment Opportunity

ApeCoin has a volatility of 7.46 and is 6.6 times more volatile than DOW. 64  of all equities and portfolios are less risky than ApeCoin. Compared to the overall equity markets, volatility of historical daily returns of ApeCoin is higher than 64 () of all global equities and portfolios over the last 90 days. Use ApeCoin to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The crypto coin experiences a very speculative upward sentiment. Check odds of ApeCoin to be traded at $7.08 in 90 days.

Average diversification

The correlation between ApeCoin and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ApeCoin and DJI in the same portfolio, assuming nothing else is changed. Please note that ApeCoin is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.

ApeCoin Additional Risk Indicators

The analysis of ApeCoin's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in ApeCoin's investment and either accepting that risk or mitigating it. Along with some common measures of ApeCoin crypto coin's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential crypto coins, we recommend comparing similar cryptos with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

ApeCoin Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against ApeCoin as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. ApeCoin's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, ApeCoin's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to ApeCoin.
Please continue to Trending Equities. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

Other Tools for ApeCoin Crypto Coin

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