Arbitrum Performance
| ARB Crypto | USD 0.48 0.02 4.00% |
The crypto shows a Beta (market volatility) of 0.0484, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Arbitrum's returns are expected to increase less than the market. However, during the bear market, the loss of holding Arbitrum is expected to be smaller as well.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Arbitrum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental drivers remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for Arbitrum shareholders. ...more
Arbitrum |
Arbitrum Relative Risk vs. Return Landscape
If you would invest 69.00 in Arbitrum on November 18, 2024 and sell it today you would lose (21.00) from holding Arbitrum or give up 30.43% of portfolio value over 90 days. Arbitrum is producing return of less than zero assuming 6.8274% volatility of returns over the 90 days investment horizon. Simply put, 60% of all crypto coins have less volatile historical return distribution than Arbitrum, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Arbitrum Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Arbitrum's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Arbitrum, and traders can use it to determine the average amount a Arbitrum'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 = -0.0471
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | ARB |
Estimated Market Risk
| 6.83 actual daily | 60 60% of assets are less volatile |
Expected Return
| -0.32 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.05 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Arbitrum is not performing at its full potential. However, 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 Arbitrum by adding Arbitrum to a well-diversified portfolio.
About Arbitrum Performance
By analyzing Arbitrum's fundamental ratios, stakeholders can gain valuable insights into Arbitrum's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Arbitrum 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 Arbitrum has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Arbitrum is peer-to-peer digital currency powered by the Blockchain technology.| Arbitrum generated a negative expected return over the last 90 days | |
| Arbitrum has high historical volatility and very poor performance | |
| Arbitrum has some characteristics of a very speculative cryptocurrency |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arbitrum. 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.