Ethereum Performance
| ETH Crypto | USD 3,397 65.42 1.96% |
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.
Risk-Adjusted Performance
11 of 100
Weak | Strong |
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Ethereum are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Ethereum exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
1 | Bitcoin dips to 57,000 level and crypto stocks tumble to begin September trading CNBC Crypto World - CNBC | 09/03/2024 |
2 | Bitcoin tests 100,000 heading into the weekend CNBC Crypto World - CNBC | 11/22/2024 |
Ethereum |
Ethereum Relative Risk vs. Return Landscape
If you would invest 245,829 in Ethereum on August 26, 2024 and sell it today you would earn a total of 86,893 from holding Ethereum or generate 35.35% return on investment over 90 days. Ethereum is generating 0.5184% of daily returns assuming 3.4803% volatility of returns over the 90 days investment horizon. Simply put, 30% of all crypto coins have less volatile historical return distribution than Ethereum, and 90% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Ethereum Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Ethereum's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Ethereum, and traders can use it to determine the average amount a Ethereum'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 = 0.149
| Best Portfolio | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 3.48 actual daily | 30 70% of assets are more volatile |
Expected Return
| 0.52 actual daily | 10 90% of assets have higher returns |
Risk-Adjusted Return
| 0.15 actual daily | 11 89% of assets perform better |
Based on monthly moving average Ethereum is performing at about 11% 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 Ethereum by adding it to a well-diversified portfolio.
About Ethereum Performance
By analyzing Ethereum's fundamental ratios, stakeholders can gain valuable insights into Ethereum's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Ethereum 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 Ethereum has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Ethereum is peer-to-peer digital currency powered by the Blockchain technology.| Ethereum appears to be risky and price may revert if volatility continues | |
| Latest headline from news.google.com: Bitcoin tests 100,000 heading into the weekend CNBC Crypto World - CNBC |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ethereum. 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.