Celsius Network Volatility

CEL
 Crypto
  

USD 3.81  0.81  27.00%   

Celsius Network is abnormally risky given 3 months investment horizon. Celsius Network secures Sharpe Ratio (or Efficiency) of 0.21, which signifies that digital coin had 0.21% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a crypto is to use Celsius Network market data together with coin specific technical indicators. We were able to analyze and collect data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 4.26% are justified by taking the suggested risk. Use Celsius Network Mean Deviation of 13.49, downside deviation of 13.7, and Risk Adjusted Performance of 0.2663 to evaluate coin specific risk that cannot be diversified away.
  
Celsius Network 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 Celsius daily returns, and it is calculated using variance and standard deviation. We also use Celsius's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Celsius Network volatility.

30 Days Market Risk

Abnormally risky

Chance of Distress

Significantly High

30 Days Economic Sensitivity

Moves completely opposite to the market
Since volatility provides cryptocurrency investors with entry points to take advantage of coin prices, projects, such as Celsius Network can benefit from it. Downward market volatility can be a perfect environment for traders who play the long game. Here, they may decide to buy additional shares of Celsius Network at lower prices. For example, an investor can purchase Celsius 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 Celsius Network's crypto rises, investors can sell out and invest the proceeds in other coins with better opportunities. Investing when markets are volatile with better valuations will accord both investors and defi or crypto projects the opportunity to generate better long-term returns.

Celsius Network Market Sensitivity And Downside Risk

Celsius Network's beta coefficient measures the volatility of Celsius 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 Celsius crypto coin's returns against your selected market. In other words, Celsius Network's beta of -3.76 provides an investor with an approximation of how much risk Celsius Network crypto coin can potentially add to one of your existing portfolios.
Celsius Network is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Celsius Network implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Celsius Network's crypto coin risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Celsius Network's crypto coin price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Celsius Network Implied Volatility

Celsius Network's implied volatility exposes the market's sentiment of Celsius Network stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Celsius Network's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Celsius Network stock will not fluctuate a lot when Celsius Network's options are near their expiration.
3 Months Beta |Analyze Celsius Network Demand Trend
Check current 90 days Celsius Network correlation with market (DOW)

Celsius Beta

    
  -3.76  
Celsius 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

    
  20.72  
It is essential to understand the difference between upside risk (as represented by Celsius Network's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Celsius Network stock's daily returns or price. Since the actual investment returns on holding a position in Celsius Network stock 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 Celsius Network.

Celsius Network Crypto Coin Volatility Analysis

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

Historical Volatility

This type of crypto volatility measures Celsius Network's fluctuations based on previous trends. It's commonly used to predict Celsius Network'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 Celsius Network's current market price. This means that the crypto will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Celsius Network Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
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Celsius Network Projected Return Density Against Market

Assuming the 90 days trading horizon Celsius Network has a beta of -3.7581 suggesting as returns on its benchmark rise, returns on holding Celsius Network are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Celsius Network is expected to outperform its benchmark.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Celsius Network or Blockchain sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Celsius Network stock's price will be affected by overall stock 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 Celsius stock'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 4.4987, implying that it can generate a 4.5 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Celsius Network's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Celsius Network stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Celsius Network Price Volatility?

Several factors can influence a Crypto's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Celsius Network Crypto Coin Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Celsius Network or Blockchain sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Celsius Network stock's price will be affected by overall stock 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 Celsius stock'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 Celsius Network is 486.02. The daily returns are distributed with a variance of 429.4 and standard deviation of 20.72. The mean deviation of Celsius Network is currently at 13.4. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
4.50
β
Beta against DOW-3.76
σ
Overall volatility
20.72
Ir
Information ratio 0.20

Celsius Network Crypto Coin Return Volatility

Celsius Network historical daily return volatility represents how much Celsius Network stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. Celsius Network assumes 20.722% volatility of returns over the 90 days investment horizon. By contrast, DOW inherits 1.2609% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Celsius Network Volatility

Volatility is a rate at which the price of Celsius Network 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 Celsius Network may increase or decrease. In other words, similar to Celsius's beta indicator, it measures the risk of Celsius Network and helps estimate the fluctuations that may happen in a short period of time. So if prices of Celsius Network 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.
Celsius Network is peer-to-peer digital currency powered by the Blockchain technology. Based in London, Celsius Network is an Ethereum-basedvalue-driven lending and borrowing platform.The Celsius Wallet was designed to allow members to use coins as collateral to get a loan in dollars, and in the future, to lend their crypto to earn interest on deposited coins.CEL is an ERC20 utility token that powersCelsius Network credit ecosystem. CEL utilities include the ability to become a member of the Celsius platform and community,the ability to deposit your cryptocurrencies in the Celsius wallet,the ability to apply for dollar loans with cryptocurrencies as collateral, andthe ability to pay interest on these loans at a discount.LinkedIn Facebook Instagram YoutubeWhitepaper

Celsius Network Investment Opportunity

Celsius Network has a volatility of 20.72 and is 16.44 times more volatile than DOW. 96  of all equities and portfolios are less risky than Celsius Network. Compared to the overall equity markets, volatility of historical daily returns of Celsius Network is higher than 96 () of all global equities and portfolios over the last 90 days.
Use Celsius Network 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 Celsius Network to be traded at $4.76 in 90 days. .

Very good diversification

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

Celsius Network Additional Risk Indicators

The analysis of Celsius Network'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 Celsius Network's investment and either accepting that risk or mitigating it. Along with some common measures of Celsius Network stock 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.
Risk Adjusted Performance0.2663
Market Risk Adjusted Performance(1.12)
Mean Deviation13.49
Semi Deviation11.32
Downside Deviation13.7
Coefficient Of Variation487.39
Standard Deviation20.67
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Celsius Network 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.
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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 Celsius Network 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. Celsius Network'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, Celsius Network'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 Celsius Network.
Continue to Trending Equities. Note that the Celsius Network information on this page should be used as a complementary analysis to other Celsius Network'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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Tools for Celsius Crypto Coin

When running Celsius Network price analysis, check to measure Celsius Network's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Celsius Network is operating at the current time. Most of Celsius Network's value examination focuses on studying past and present price action to predict the probability of Celsius Network's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Celsius Network's price. Additionally, you may evaluate how the addition of Celsius Network to your portfolios can decrease your overall portfolio volatility.
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