Axie Infinity Volatility

AXS
 Crypto
  

USD 13.11  0.29  2.26%   

We consider Axie Infinity unusually volatile. Axie Infinity Shards secures Sharpe Ratio (or Efficiency) of 0.0095, which signifies that digital coin had 0.0095% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a crypto is to use all available market data together with crypto-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Axie Infinity Shards, which you can use to evaluate the future volatility of coin. Please confirm Axie Infinity Shards Downside Deviation of 7.81, mean deviation of 5.15, and Risk Adjusted Performance of 0.0521 to double-check if the risk estimate we provide is consistent with the expected return of 0.0623%.
  
Axie Infinity 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 Axie Infinity daily returns, and it is calculated using variance and standard deviation. We also use Axie Infinity's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Axie Infinity volatility.

30 Days Market Risk

Unusually volatile

Chance of Distress

Above Average

30 Days Economic Sensitivity

Almost mirrors the market
Since volatility provides cryptocurrency investors with entry points to take advantage of coin prices, investors in projects such as Axie Infinity Shards can benefit from it. Downward market volatility can be a perfect environment for traders who play the long game. Here, they may buy additional Axie Infinity shares at lower prices. For example, an investor can purchase Axie Infinity 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 Axie Infinity'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 Axie Infinity to generate better long-term returns.

Moving together with Axie Infinity

+0.81XRPXRPPairCorr
+0.87SOLSolanaPairCorr
+0.65LINKChainlinkPairCorr

Axie Infinity Market Sensitivity And Downside Risk

Axie Infinity's beta coefficient measures the volatility of Axie Infinity 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 Axie Infinity crypto coin's returns against your selected market. In other words, Axie Infinity's beta of -0.81 provides an investor with an approximation of how much risk Axie Infinity crypto coin can potentially add to one of your existing portfolios.
Axie Infinity Shards is displaying above-average volatility over the selected time horizon. Investors should scrutinize Axie Infinity Shards independently to ensure intended cryptocurrency market timing strategies are aligned with expectations about Axie Infinity 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 Axie Infinity Shards. 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 Axie Infinity 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 Axie Infinity'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 Axie Infinity'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 Axie Infinity Shards Demand Trend
Check current 90 days Axie Infinity correlation with market (DOW)

Axie Infinity Beta

    
  -0.81  
Axie Infinity 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

    
  6.53  
It is essential to understand the difference between upside risk (as represented by Axie Infinity's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Axie Infinity's daily returns or price. Since the actual investment returns on holding a position in axie infinity 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 Axie Infinity.

Axie Infinity Shards Crypto Coin Volatility Analysis

Volatility refers to the frequency at which Axie Infinity crypto price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Axie Infinity's price changes. Investors will then calculate the volatility of Axie Infinity'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 Axie Infinity's volatility:

Historical Volatility

This type of crypto volatility measures Axie Infinity's fluctuations based on previous trends. It's commonly used to predict Axie Infinity'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 Axie Infinity'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 Axie Infinity's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of Axie Infinity Shards price series.
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Axie Infinity Projected Return Density Against Market

Assuming the 90 days trading horizon Axie Infinity Shards has a beta of -0.8146 . This suggests as returns on benchmark increase, returns on holding Axie Infinity are expected to decrease at a much lower rate. During the bear market, however, Axie Infinity Shards is likely to outperform the market.
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 Axie Infinity 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 Axie Infinity'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 Axie Infinity 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 0.224, implying that it can generate a 0.22 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Axie Infinity's volatility of a cryptocurrency is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how axie infinity crypto coin's price will differ from the historical average after some time. There is a big difference when you buy Axie Infinity 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 Axie Infinity's price volatility.

Axie Infinity 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 Axie Infinity 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 Axie Infinity'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 Axie Infinity 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 Axie Infinity is 10479.43. The daily returns are distributed with a variance of 42.67 and standard deviation of 6.53. The mean deviation of Axie Infinity Shards is currently at 4.57. For similar time horizon, the selected benchmark (DOW) has volatility of 1.
α
Alpha over DOW
0.22
β
Beta against DOW-0.81
σ
Overall volatility
6.53
Ir
Information ratio 0.0436

Axie Infinity Crypto Coin Return Volatility

Axie Infinity historical daily return volatility represents how much of Axie Infinity 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 Axie Infinity Shards 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. Axie Infinity Shards assumes 6.5325% volatility of returns over the 90 days investment horizon. By contrast, DOW inherits 1.0997% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Axie Infinity Volatility

Volatility is a rate at which the price of Axie Infinity 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 Axie Infinity may increase or decrease. In other words, similar to Axie Infinity's beta indicator, it measures the risk of Axie Infinity and helps estimate the fluctuations that may happen in a short period of time. So if prices of Axie Infinity 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.

Axie Infinity Investment Opportunity

Axie Infinity Shards has a volatility of 6.53 and is 5.94 times more volatile than DOW. 56  of all equities and portfolios are less risky than Axie Infinity. Compared to the overall equity markets, volatility of historical daily returns of Axie Infinity Shards is higher than 56 () of all global equities and portfolios over the last 90 days. Use Axie Infinity Shards to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The crypto coin experiences an unexpected upward trend. Watch out for market signals. Check odds of Axie Infinity to be traded at $15.73 in 90 days.

Good diversification

The correlation between Axie Infinity Shards and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Axie Infinity Shards and DJI in the same portfolio, assuming nothing else is changed. Please note that Axie Infinity Shards is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.

Axie Infinity Additional Risk Indicators

The analysis of Axie Infinity'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 Axie Infinity's investment and either accepting that risk or mitigating it. Along with some common measures of Axie Infinity 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.

Axie Infinity 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 Axie Infinity 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. Axie Infinity'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, Axie Infinity'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 Axie Infinity Shards.
Please continue to Trending Equities. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Tools for Axie Infinity Crypto Coin

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