Polkadot Performance
| DOT Crypto | USD 8.53 1.89 28.46% |
The crypto holds a Beta of 1.19, which implies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Polkadot will likely underperform.
Risk-Adjusted Performance
17 of 100
Weak | Strong |
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Polkadot are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Polkadot exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
1 | Which Crypto To Buy Right Now 10 Best Cryptocurrency Coins To Buy For the Bull Run - Brave New Coin Insights | 11/22/2024 |
Polkadot |
Polkadot Relative Risk vs. Return Landscape
If you would invest 426.00 in Polkadot on August 27, 2024 and sell it today you would earn a total of 427.00 from holding Polkadot or generate 100.23% return on investment over 90 days. Polkadot is generating 1.2152% of daily returns assuming 5.5441% volatility of returns over the 90 days investment horizon. Simply put, 49% of all crypto coins have less volatile historical return distribution than Polkadot, and 76% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Polkadot Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Polkadot's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Polkadot, and traders can use it to determine the average amount a Polkadot's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = 0.2192
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 5.54 actual daily | 49 51% of assets are more volatile |
Expected Return
| 1.22 actual daily | 24 76% of assets have higher returns |
Risk-Adjusted Return
| 0.22 actual daily | 17 83% of assets perform better |
Based on monthly moving average Polkadot is performing at about 17% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Polkadot by adding it to a well-diversified portfolio.
About Polkadot Performance
By analyzing Polkadot's fundamental ratios, stakeholders can gain valuable insights into Polkadot's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Polkadot has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Polkadot has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Polkadot is peer-to-peer digital currency powered by the Blockchain technology.| Polkadot is way too risky over 90 days horizon | |
| Polkadot appears to be risky and price may revert if volatility continues | |
| Latest headline from news.google.com: Which Crypto To Buy Right Now 10 Best Cryptocurrency Coins To Buy For the Bull Run - Brave New Coin Insights |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Polkadot. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.