Compound Governance Volatility


USD 61.19  3.69  5.69%   

We consider Compound Governance unreasonably risky. Compound Governance Token secures Sharpe Ratio (or Efficiency) of 6.0E-4, which signifies that digital coin had 6.0E-4% 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 Compound Governance Token, which you can use to evaluate the future volatility of coin. Please confirm Compound Governance Token mean deviation of 7.11, and Risk Adjusted Performance of (0.013051) to double-check if the risk estimate we provide is consistent with the expected return of 0.0056%.
Compound Governance 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 Compound daily returns, and it is calculated using variance and standard deviation. We also use Compound's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Compound Governance volatility.

180 Days Market Risk

Unreasonably risky

Chance of Distress

180 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides cryptocurrency investors with entry points to take advantage of coin prices, projects, such as Compound Governance 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 Compound Governance at lower prices. For example, an investor can purchase Compound 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 Compound Governance'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.

Moving together with Compound Governance


Compound Governance Market Sensitivity And Downside Risk

Compound Governance's beta coefficient measures the volatility of Compound 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 Compound crypto coin's returns against your selected market. In other words, Compound Governance's beta of -0.47 provides an investor with an approximation of how much risk Compound Governance crypto coin can potentially add to one of your existing portfolios.
Compound Governance Token is displaying above-average volatility over the selected time horizon. Investors should scrutinize Compound Governance Token independently to ensure intended market timing strategies are aligned with expectations about Compound Governance volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Compound Governance'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 Compound Governance'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.

Compound Governance Implied Volatility

Compound Governance's implied volatility exposes the market's sentiment of Compound Governance Token stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Compound Governance'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 Compound Governance stock will not fluctuate a lot when Compound Governance's options are near their expiration.
3 Months Beta |Analyze Compound Governance Token Demand Trend
Check current 90 days Compound Governance correlation with market (DOW)

Compound Beta

Compound 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

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

Compound Governance Token Crypto Coin Volatility Analysis

Volatility refers to the frequency at which Compound Governance stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Compound Governance's price changes. Investors will then calculate the volatility of Compound Governance's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Compound Governance's volatility:

Historical Volatility

This type of stock volatility measures Compound Governance's fluctuations based on previous trends. It's commonly used to predict Compound Governance's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Compound Governance's current market price. This means that the stock will return to its initially predicted market price.
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 Compound Governance Token price series.

Compound Governance Projected Return Density Against Market

Assuming the 90 days trading horizon Compound Governance Token has a beta of -0.4737 suggesting as returns on benchmark increase, returns on holding Compound Governance are expected to decrease at a much lower rate. During the bear market, however, Compound Governance Token is likely to outperform the market.
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 Compound Governance 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 Compound Governance 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 Compound 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Compound Governance Token is significantly underperforming DOW.
   Predicted Return Density   
Compound Governance's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Compound Governance 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 Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:


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.

Compound Governance 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 Compound Governance 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 Compound Governance 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 Compound 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 Compound Governance is 175709.87. The daily returns are distributed with a variance of 95.36 and standard deviation of 9.77. The mean deviation of Compound Governance Token is currently at 6.93. For similar time horizon, the selected benchmark (DOW) has volatility of 1.36
Alpha over DOW
Beta against DOW-0.47
Overall volatility
Information ratio -0.02

Compound Governance Crypto Coin Return Volatility

Compound Governance historical daily return volatility represents how much Compound Governance stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. Compound Governance Token accepts 9.7652% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.247% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 

About Compound Governance Volatility

Volatility is a rate at which the price of Compound Governance 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 Compound Governance may increase or decrease. In other words, similar to Compound's beta indicator, it measures the risk of Compound Governance and helps estimate the fluctuations that may happen in a short period of time. So if prices of Compound Governance 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.
Compound Governance Token is peer-to-peer digital currency powered by the Blockchain technology. Compound is an ERC-20 asset that empowers community governance of the Compound protocol COMP token-holders and their delegates debate, propose, and vote on all changes to the protocol.By placing COMP directly into the hands of users and applications, an increasingly large ecosystem will be able to upgrade the protocol and will be incentivized to collectively steward the protocol into the future with good governance.Each day, approximately 2,312 COMP will be distributed to users of the protocol the distribution is allocated to each market , and is set through the governance process by COMP token-holders.Within each market, half of the distribution is earned by suppliers, and the other half by borrowers.Discord

Compound Governance Investment Opportunity

Compound Governance Token has a volatility of 9.77 and is 7.82 times more volatile than DOW. 84  of all equities and portfolios are less risky than Compound Governance. Compared to the overall equity markets, volatility of historical daily returns of Compound Governance Token is higher than 84 () of all global equities and portfolios over the last 90 days.
Use Compound Governance Token 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 Compound Governance to be traded at $58.13 in 90 days. .

Good diversification

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

Compound Governance Additional Risk Indicators

The analysis of Compound Governance'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 Compound Governance's investment and either accepting that risk or mitigating it. Along with some common measures of Compound Governance 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 Performance(0.013051)
Market Risk Adjusted Performance0.3633
Mean Deviation7.11
Coefficient Of Variation(6,262)
Standard Deviation9.85
Information Ratio(0.015375)
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.

Compound Governance 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 Compound Governance 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. Compound Governance'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, Compound Governance'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 Compound Governance Token.
Continue to Trending Equities. Note that the Compound Governance Token information on this page should be used as a complementary analysis to other Compound Governance'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Tools for Compound Crypto Coin

When running Compound Governance Token price analysis, check to measure Compound Governance'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 Compound Governance is operating at the current time. Most of Compound Governance's value examination focuses on studying past and present price action to predict the probability of Compound Governance's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Compound Governance's price. Additionally, you may evaluate how the addition of Compound Governance to your portfolios can decrease your overall portfolio volatility.
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