Beta Finance Volatility

BETA
 Crypto
  

USD 0.1  0.0104  9.45%   

Beta Finance appears to be unreasonably risky, given 3 months investment horizon. Beta Finance secures Sharpe Ratio (or Efficiency) of 0.0342, which signifies that digital coin had 0.0342% 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 Beta Finance, which you can use to evaluate the future volatility of coin. Please makes use of Beta Finance's Downside Deviation of 8.95, mean deviation of 4.97, and Risk Adjusted Performance of 0.052 to double-check if our risk estimates are consistent with your expectations.
  
Beta Finance 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 Beta Finance daily returns, and it is calculated using variance and standard deviation. We also use Beta Finance's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Beta Finance volatility.

720 Days Market Risk

Unreasonably risky

Chance of Distress

Very Low

720 Days Economic Sensitivity

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

Moving together with Beta Finance

+0.65XRPXRPPairCorr
+0.69MATICPolygonPairCorr
+0.74FTTFTX TokenPairCorr

Moving against Beta Finance

-0.56LEOLEO TokenPairCorr

Beta Finance Market Sensitivity And Downside Risk

Beta Finance's beta coefficient measures the volatility of Beta Finance 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 Beta Finance crypto coin's returns against your selected market. In other words, Beta Finance's beta of 0.39 provides an investor with an approximation of how much risk Beta Finance crypto coin can potentially add to one of your existing portfolios.
Beta Finance is displaying above-average volatility over the selected time horizon. Investors should scrutinize Beta Finance independently to ensure intended cryptocurrency market timing strategies are aligned with expectations about Beta Finance volatility. Beta Finance appears to be a penny crypto. Although Beta Finance may be, in fact, a solid short-term or long term investment, many penny crypto coins are speculative digital assets that are often subject to artificial coin promotions and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Beta Finance crypto or similar risky assets. We encourage cryptocurrency investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage crypto traders to check the biographies and work history of the founders of the accociated project, carefully read the white papers and consensus ducoments before investing in high-volatility coins. You can indeed make money on Beta Finance 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 Beta Finance'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 Beta Finance'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 Beta Finance Demand Trend
Check current 90 days Beta Finance correlation with market (DOW)

Beta Finance Beta

    
  0.39  
Beta Finance 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

    
  7.17  
It is essential to understand the difference between upside risk (as represented by Beta Finance's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Beta Finance's daily returns or price. Since the actual investment returns on holding a position in beta finance 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 Beta Finance.

Beta Finance Crypto Coin Volatility Analysis

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

Historical Volatility

This type of crypto volatility measures Beta Finance's fluctuations based on previous trends. It's commonly used to predict Beta Finance'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 Beta Finance'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 Beta Finance's to be redeemed at a future date.
Transformation
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Beta Finance Projected Return Density Against Market

Assuming the 90 days trading horizon Beta Finance has a beta of 0.3876 suggesting as returns on the market go up, Beta Finance average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Beta Finance will be expected to be much smaller as well.
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 Beta Finance 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 Beta Finance'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 Beta Finance 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 0.2808, implying that it can generate a 0.28 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Beta Finance's volatility of a cryptocurrency is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how beta finance crypto coin's price will differ from the historical average after some time. There is a big difference when you buy Beta Finance 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 Beta Finance's price volatility.

Beta Finance 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 Beta Finance 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 Beta Finance'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 Beta Finance 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 Beta Finance is 2920.52. The daily returns are distributed with a variance of 51.36 and standard deviation of 7.17. The mean deviation of Beta Finance is currently at 4.8. For similar time horizon, the selected benchmark (DOW) has volatility of 1.
α
Alpha over DOW
0.28
β
Beta against DOW0.39
σ
Overall volatility
7.17
Ir
Information ratio 0.0435

Beta Finance Crypto Coin Return Volatility

Beta Finance historical daily return volatility represents how much of Beta Finance 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 Beta Finance 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. Beta Finance accepts 7.1665% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.0965% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Beta Finance Volatility

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

Beta Finance Investment Opportunity

Beta Finance has a volatility of 7.17 and is 6.52 times more volatile than DOW. 62  of all equities and portfolios are less risky than Beta Finance. Compared to the overall equity markets, volatility of historical daily returns of Beta Finance is higher than 62 () of all global equities and portfolios over the last 90 days. Use Beta Finance to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The crypto coin experiences a very speculative upward sentiment. Check odds of Beta Finance to be traded at $0.0946 in 90 days.

Significant diversification

The correlation between Beta Finance and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Beta Finance and DJI in the same portfolio, assuming nothing else is changed. Please note that Beta Finance is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.

Beta Finance Additional Risk Indicators

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

Beta Finance 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 Beta Finance 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. Beta Finance'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, Beta Finance'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 Beta Finance.
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Other Tools for Beta Finance Crypto Coin

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