Stellar Volatility

XLM
 Crypto
  

USD 0.09  0.002  2.27%   

Stellar owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0027, which indicates digital coin had -0.0027% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any crypto is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Stellar exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Stellar coefficient of variation of (4,746), and Risk Adjusted Performance of (0.022103) to confirm the risk estimate we provide.
  
Stellar 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 Stellar daily returns, and it is calculated using variance and standard deviation. We also use Stellar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Stellar volatility.

30 Days Market Risk

Unusually risky

Chance of Distress

Average

30 Days Economic Sensitivity

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

Moving together with Stellar

+0.66XRPXRPPairCorr
+0.82SOLSolanaPairCorr
+0.61LINKChainlinkPairCorr

Moving against Stellar

-0.59OKBOKBPairCorr

Stellar Market Sensitivity And Downside Risk

Stellar's beta coefficient measures the volatility of Stellar 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 Stellar crypto coin's returns against your selected market. In other words, Stellar's beta of -0.33 provides an investor with an approximation of how much risk Stellar crypto coin can potentially add to one of your existing portfolios.
Stellar is displaying above-average volatility over the selected time horizon. Investors should scrutinize Stellar independently to ensure intended cryptocurrency market timing strategies are aligned with expectations about Stellar volatility. Stellar appears to be a penny crypto. Although Stellar 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 Stellar 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 Stellar 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 Stellar'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 Stellar'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 Stellar Demand Trend
Check current 90 days Stellar correlation with market (DOW)

Stellar Beta

    
  -0.33  
Stellar 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

    
  6.05  
It is essential to understand the difference between upside risk (as represented by Stellar's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Stellar's daily returns or price. Since the actual investment returns on holding a position in stellar 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 Stellar.

Stellar Crypto Coin Volatility Analysis

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

Historical Volatility

This type of crypto volatility measures Stellar's fluctuations based on previous trends. It's commonly used to predict Stellar'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 Stellar'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 Stellar's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Stellar high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Stellar closing price as input.
.

Stellar Projected Return Density Against Market

Assuming the 90 days trading horizon Stellar has a beta of -0.3297 . This entails as returns on benchmark increase, returns on holding Stellar are expected to decrease at a much lower rate. During the bear market, however, Stellar is likely to outperform the market.
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 Stellar 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 Stellar'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 Stellar 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Stellar is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Stellar's volatility of a cryptocurrency is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how stellar crypto coin's price will differ from the historical average after some time. There is a big difference when you buy Stellar 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 Stellar's price volatility.

Stellar 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 Stellar 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 Stellar'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 Stellar 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 Stellar is -36408.4. The daily returns are distributed with a variance of 36.57 and standard deviation of 6.05. The mean deviation of Stellar is currently at 3.91. For similar time horizon, the selected benchmark (DOW) has volatility of 1.
α
Alpha over DOW
-0.12
β
Beta against DOW-0.33
σ
Overall volatility
6.05
Ir
Information ratio -0.03

Stellar Crypto Coin Return Volatility

Stellar historical daily return volatility represents how much of Stellar 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 Stellar 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. Stellar assumes 6.0477% volatility of returns over the 90 days investment horizon. By contrast, DOW inherits 1.374% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Stellar Volatility

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

Stellar Investment Opportunity

Stellar has a volatility of 6.05 and is 4.42 times more volatile than DOW. 52  of all equities and portfolios are less risky than Stellar. Compared to the overall equity markets, volatility of historical daily returns of Stellar is higher than 52 () of all global equities and portfolios over the last 90 days. Use Stellar to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The crypto coin experiences an unexpected upward trend. Watch out for market signals. Check odds of Stellar to be traded at $0.108 in 90 days.

Good diversification

The correlation between Stellar and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and DJI in the same portfolio, assuming nothing else is changed. Please note that Stellar is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.

Stellar Additional Risk Indicators

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

Stellar 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 Stellar 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. Stellar'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, Stellar'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 Stellar.
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Other Tools for Stellar Crypto Coin

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