Algorand Alpha and Beta Analysis

ALGO
 Crypto
  

USD 0.35  0.01  2.78%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Algorand. It also helps investors analyze the systematic and unsystematic risks associated with investing in Algorand over a specified time horizon. Remember, high Algorand'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.
Please continue to Algorand Backtesting, Portfolio Optimization, Algorand Correlation, Cryptocurrency Center, Algorand Volatility, Algorand History and analyze Algorand Performance.
  
Please note that although Algorand 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, Algorand did 0.32  better 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 Algorand crypto's relative risk over its benchmark. Algorand has a beta of 0.45  . Let's try to break down what Algorand's beta means in this case. As returns on the market increase, Algorand returns are expected to increase less than the market. However, during the bear market, the loss on holding Algorand will be expected to be smaller as well.
.
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.

Algorand Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Algorand market risk premium is the additional return an investor will receive from holding Algorand 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 Algorand. 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 Algorand's performance over market.
α0.32   β0.45
90 days against DJI

Algorand Price Momentum Analysis

Algorand Market Price Analysis

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

Algorand Return and Market Media

The median price of Algorand for the period between Tue, Jul 5, 2022 and Mon, Oct 3, 2022 is 0.33 with a coefficient of variation of 8.33. The daily time series for the period is distributed with a sample standard deviation of 0.03, arithmetic mean of 0.33, and mean deviation of 0.02. The Crypto received some media coverage during the period.
 Price Growth (%)  
       Timeline  
1
California Regulator Targets 11 Crypto Trading Desks Operati...09/27/2022

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

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.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
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
Please continue to Algorand Backtesting, Portfolio Optimization, Algorand Correlation, Cryptocurrency Center, Algorand Volatility, Algorand History and analyze Algorand Performance. Note that the Algorand information on this page should be used as a complementary analysis to other Algorand's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Tools for Algorand Crypto Coin

When running Algorand price analysis, check to measure Algorand's coin volatility and technical momentum indicators. We have many different tools that can be utilized to determine how healthy Algorand is operating at the current time. Most of Algorand's value examination focuses on studying past and present price actions to predict the probability of Algorand's future price movements. You can analyze the coin against its peers and the financial market as a whole to determine factors that move Algorand's coin price. Additionally, you may evaluate how adding Algorand to your portfolios can decrease your overall portfolio volatility.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go