Aave Alpha and Beta Analysis
| AAVE Crypto | USD 273.01 3.57 1.29% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Aave. It also helps investors analyze the systematic and unsystematic risks associated with investing in Aave over a specified time horizon. Remember, high Aave'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.
Beta (0.21) | Alpha 1.11 | Risk 6.26 | Sharpe Ratio 0.19 | Expected Return 1.18 |
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.
Aave |
Aave Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Aave market risk premium is the additional return an investor will receive from holding Aave 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 Aave. 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 Aave's performance over market.| α | 1.11 | β | -0.21 |
Aave Price Momentum Analysis
Aave Market Price Analysis
Market price analysis indicators help investors to evaluate how Aave 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 Aave shares will generate the highest return on investment. By understating and applying Aave crypto coin market price indicators, traders can identify Aave position entry and exit signals to maximize returns.
Aave Return and Market Media
The median price of Aave for the period between Thu, Sep 12, 2024 and Wed, Dec 11, 2024 is 156.86 with a coefficient of variation of 22.12. The daily time series for the period is distributed with a sample standard deviation of 37.73, arithmetic mean of 170.57, and mean deviation of 26.9. The Crypto did not receive any noticable media coverage during the period. Price Growth (%) |
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About Aave 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 Aave or other cryptos. Alpha measures the amount that position in Aave 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 Aave 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.
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Check out Aave Backtesting, Portfolio Optimization, Aave Correlation, Cryptocurrency Center, Aave Volatility, Aave History and analyze Aave Performance. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Aave technical crypto coin analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, crypto market cycles, or different charting patterns.