Optimism Alpha and Beta Analysis

OP
 Crypto
  

USD 1.04  0.07  6.31%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Optimism. It also helps investors analyze the systematic and unsystematic risks associated with investing in Optimism over a specified time horizon. Remember, high Optimism'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 check Optimism Backtesting, Portfolio Optimization, Optimism Correlation, Cryptocurrency Center, Optimism Volatility, Optimism History and analyze Optimism Performance.
  
Please note that although Optimism 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, Optimism did 0.25  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 Optimism crypto's relative risk over its benchmark. Optimism has a beta of 0.27  . Let's try to break down what Optimism's beta means in this case. As returns on the market increase, returns on owning Optimism are expected to decrease at a much lower rate. During the bear market, Optimism is likely to outperform the market.
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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.

Optimism Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Optimism market risk premium is the additional return an investor will receive from holding Optimism 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 Optimism. 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 Optimism's performance over market.
α0.25   β-0.27
90 days against NYA

Optimism Price Momentum Analysis

Optimism Market Price Analysis

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

Optimism Return and Market Media

The median price of Optimism for the period between Tue, Sep 6, 2022 and Mon, Dec 5, 2022 is 0.93 with a coefficient of variation of 17.74. The daily time series for the period is distributed with a sample standard deviation of 0.17, arithmetic mean of 0.97, and mean deviation of 0.14. The Crypto did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

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

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

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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
Please check Optimism Backtesting, Portfolio Optimization, Optimism Correlation, Cryptocurrency Center, Optimism Volatility, Optimism History and analyze Optimism Performance. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

Other Tools for Optimism Crypto Coin

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