Aave Market Value
| AAVE Crypto | USD 232.46 20.63 9.74% |
| Symbol | Aave |
Aave 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Aave's crypto coin what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Aave.
| 11/03/2024 |
| 12/03/2024 |
If you would invest 0.00 in Aave on November 3, 2024 and sell it all today you would earn a total of 0.00 from holding Aave or generate 0.0% return on investment in Aave over 30 days. Aave is related to or competes with XRP, Solana, Staked Ether, Toncoin, Worldcoin, Sui, and Stellar. Aave is peer-to-peer digital currency powered by the Blockchain technology.
Aave Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Aave's crypto coin current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Aave upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.28 | |||
| Information Ratio | 0.1678 | |||
| Maximum Drawdown | 36.81 | |||
| Value At Risk | (8.18) | |||
| Potential Upside | 13.84 |
Aave Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Aave's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Aave's standard deviation. In reality, there are many statistical measures that can use Aave historical prices to predict the future Aave's volatility.| Risk Adjusted Performance | 0.1516 | |||
| Jensen Alpha | 1.22 | |||
| Total Risk Alpha | 0.2334 | |||
| Sortino Ratio | 0.2554 | |||
| Treynor Ratio | (12.87) |
Aave Backtested Returns
Aave is unusually volatile given 3 months investment horizon. Aave secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that digital coin had a 0.17% return per unit of risk over the last 3 months. We were able to break down thirty different technical indicators, which can help you to evaluate if expected returns of 1.1% are justified by taking the suggested risk. Use Aave Risk Adjusted Performance of 0.1516, mean deviation of 4.61, and Downside Deviation of 4.28 to evaluate coin specific risk that cannot be diversified away. The crypto shows a Beta (market volatility) of -0.0939, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Aave are expected to decrease at a much lower rate. During the bear market, Aave is likely to outperform the market.
Auto-correlation | -0.15 |
Insignificant reverse predictability
Aave has insignificant reverse predictability. Overlapping area represents the amount of predictability between Aave time series from 3rd of November 2024 to 18th of November 2024 and 18th of November 2024 to 3rd of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Aave price movement. The serial correlation of -0.15 indicates that less than 15.0% of current Aave price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.15 | |
| Spearman Rank Test | -0.42 | |
| Residual Average | 0.0 | |
| Price Variance | 521.87 |
Aave lagged returns against current returns
Autocorrelation, which is Aave crypto coin's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Aave's crypto coin expected returns. We can calculate the autocorrelation of Aave returns to help us make a trade decision. For example, suppose you find that Aave has exhibited high autocorrelation historically, and you observe that the crypto coin is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Aave regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Aave crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Aave crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Aave crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Aave Lagged Returns
When evaluating Aave's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Aave crypto coin have on its future price. Aave autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Aave autocorrelation shows the relationship between Aave crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Aave.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Aave offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Aave's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Aave Crypto.Check out Aave Correlation, Aave Volatility and Investing Opportunities module to complement your research on Aave. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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.