Ethereum Market Value
| ETH Crypto | USD 3,397 65.42 1.96% |
| Symbol | Ethereum |
Ethereum '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 Ethereum'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 Ethereum.
| 11/30/2023 |
| 11/24/2024 |
If you would invest 0.00 in Ethereum on November 30, 2023 and sell it all today you would earn a total of 0.00 from holding Ethereum or generate 0.0% return on investment in Ethereum over 360 days. Ethereum is related to or competes with Staked Ether, Cronos, Wrapped Bitcoin, XMR, Tether, Chainlink, and USD Coin. Ethereum is peer-to-peer digital currency powered by the Blockchain technology.
Ethereum 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 Ethereum'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 Ethereum upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.76 | |||
| Information Ratio | 0.0661 | |||
| Maximum Drawdown | 16.62 | |||
| Value At Risk | (5.39) | |||
| Potential Upside | 6.35 |
Ethereum Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Ethereum's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Ethereum's standard deviation. In reality, there are many statistical measures that can use Ethereum historical prices to predict the future Ethereum's volatility.| Risk Adjusted Performance | 0.0854 | |||
| Jensen Alpha | 0.2234 | |||
| Total Risk Alpha | (0.22) | |||
| Sortino Ratio | 0.0662 | |||
| Treynor Ratio | 0.3057 |
Ethereum Backtested Returns
Ethereum appears to be very volatile, given 3 months investment horizon. Ethereum secures Sharpe Ratio (or Efficiency) of 0.16, which denotes digital coin had a 0.16% return per unit of risk over the last 3 months. By reviewing Ethereum's technical indicators, you can evaluate if the expected return of 0.55% is justified by implied risk. Please utilize Ethereum's Downside Deviation of 3.76, coefficient of variation of 990.85, and Mean Deviation of 2.69 to check if our risk estimates are consistent with your expectations. The crypto shows a Beta (market volatility) of 1.21, which means 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, Ethereum will likely underperform.
Auto-correlation | -1 |
Near perfect reversele predictability
Ethereum has near perfect reversele predictability. Overlapping area represents the amount of predictability between Ethereum time series from 30th of November 2023 to 28th of May 2024 and 28th of May 2024 to 24th of November 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 Ethereum price movement. The serial correlation of -1.0 indicates that 100.0% of current Ethereum price fluctuation can be explain by its past prices.
| Correlation Coefficient | -1.0 | |
| Spearman Rank Test | 0.5 | |
| Residual Average | 0.0 | |
| Price Variance | 42.41 |
Ethereum lagged returns against current returns
Autocorrelation, which is Ethereum 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 Ethereum's crypto coin expected returns. We can calculate the autocorrelation of Ethereum returns to help us make a trade decision. For example, suppose you find that Ethereum 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 |
Ethereum 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 Ethereum crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Ethereum crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Ethereum crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Ethereum Lagged Returns
When evaluating Ethereum's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Ethereum crypto coin have on its future price. Ethereum 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, Ethereum autocorrelation shows the relationship between Ethereum crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Ethereum.
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 Ethereum offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ethereum'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 Ethereum Crypto.Check out Ethereum Correlation, Ethereum Volatility and Investing Opportunities module to complement your research on Ethereum. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Ethereum 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.