Play Volatility
| PLAY Crypto | USD 0.04 0.0002 0.48% |
Play is abnormally risky given 3 months investment horizon. Play maintains Sharpe Ratio (i.e., Efficiency) of 0.13, which implies digital coin had a 0.13 % return per unit of risk over the last 3 months. We were able to break down twenty-nine different technical indicators, which can help you to evaluate if expected returns of 16.86% are justified by taking the suggested risk. Use Play Risk Adjusted Performance of 0.1038, semi deviation of 4.32, and Coefficient Of Variation of 783.51 to evaluate coin specific risk that cannot be diversified away.
Sharpe Ratio = 0.1337
| High Returns | Best Equity | PLAY | ||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Based on monthly moving average Play is performing at about 10% 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 Play by adding it to a well-diversified portfolio.
Key indicators related to Play's volatility include:30 Days Market Risk | Risk of Devaluation | 30 Days Economic Sensitivity |
Play Crypto Coin volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Play daily returns, and it is calculated using variance and standard deviation. We also use Play's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Play volatility.
Play |
Since volatility provides cryptocurrency investors with entry points to take advantage of coin prices, investors in projects such as Play can benefit from it. Downward market volatility can be a perfect environment for traders who play the long game. Here, they may buy additional Play shares at lower prices. For example, an investor can purchase Play coin that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Play's crypto rise, investors can sell out and invest the proceeds in other coins with better opportunities. Investing in volatile markets will allow investors in evolving Defi or crypto projects such as Play to generate better long-term returns.
Moving together with Play Crypto Coin
Moving against Play Crypto Coin
| 0.8 | XLM | Stellar | PairCorr |
| 0.78 | CRO | Cronos | PairCorr |
| 0.75 | SUI | Sui | PairCorr |
| 0.74 | SOL | Solana | PairCorr |
| 0.73 | LINK | Chainlink | PairCorr |
| 0.72 | WBTC | Wrapped Bitcoin | PairCorr |
| 0.69 | STETH | Staked Ether | PairCorr |
| 0.69 | WEETH | Wrapped eETH | PairCorr |
| 0.67 | WBETH | Wrapped Beacon ETH | PairCorr |
| 0.66 | XRP | XRP | PairCorr |
Play Market Sensitivity And Downside Risk
Play's beta coefficient measures the volatility of Play crypto coin compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Play crypto coin's returns against your selected market. In other words, Play's beta of -0.37 provides an investor with an approximation of how much risk Play crypto coin can potentially add to one of your existing portfolios. Play is displaying above-average volatility over the selected time horizon. Investors should scrutinize Play independently to ensure intended cryptocurrency market timing strategies are aligned with expectations about Play volatility. Play appears to be a penny crypto. Although Play may be, in fact, a solid short-term or long term investment, many penny crypto coins are speculative digital assets that are often subject to artificial coin promotions and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Play crypto or similar risky assets. We encourage cryptocurrency investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage crypto traders to check the biographies and work history of the founders of the accociated project, carefully read the white papers and consensus ducoments before investing in high-volatility coins. You can indeed make money on Play if you perfectly time your entry and exit. However, remember that cryptos that have been the subject of artificial hype usually cannot maintain its increased price for more than a few days. The price of a promoted high-volatility instrument will almost always revert. The only way to increase coin holder value is through legitimate performance analysis backed up by solid fundamentals of the project the coin represents. Understanding different market volatility trends often help investors time the market. Properly using volatility indicators enable traders to measure Play's crypto coin risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Play's price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different cryptos as prices fall or investing in DeFi projects.
3 Months Beta |Analyze Play Demand TrendCheck current 90 days Play correlation with market (Dow Jones Industrial)Play Volatility and Downside Risk
Play standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Play Crypto Coin Volatility Analysis
Volatility refers to the frequency at which Play crypto price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Play's price changes. Investors will then calculate the volatility of Play's crypto coin to predict their future moves. A crypto that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A crypto coin with relatively stable price changes has low volatility. A highly volatile crypto is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Play's volatility:
Historical Volatility
This type of crypto volatility measures Play's fluctuations based on previous trends. It's commonly used to predict Play's future behavior based on its past. However, it cannot conclusively determine the future direction of the crypto coin.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Play's current market price. This means that the crypto will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Play's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Play Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Play Projected Return Density Against Market
Assuming the 90 days trading horizon Play has a beta of -0.3678 indicating as returns on the benchmark increase, returns on holding Play are expected to decrease at a much lower rate. During a bear market, however, Play is likely to outperform the market.Most traded cryptocurrencies are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or coin-specific or project-specific) risk. Unsystematic risk is the risk that events specific to Play project will adversely affect the coin's price. This type of risk can be diversified away by owning several different digital assets on different exchanges whose coin prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Play's price will be affected by overall cryptocurrency market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Play crypto's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Play has an alpha of 0.9565, implying that it can generate a 0.96 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
Play Crypto Coin Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Play is 747.98. The daily returns are distributed with a variance of 15898.01 and standard deviation of 126.09. The mean deviation of Play is currently at 32.14. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.
α | Alpha over Dow Jones | 0.96 | |
β | Beta against Dow Jones | -0.37 | |
σ | Overall volatility | 126.09 | |
Ir | Information ratio | 0.12 |
Play Crypto Coin Return Volatility
Play historical daily return volatility represents how much of Play crypto's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. Keep in mind that cryptocurrencies such as Play have only been around for a short time and are still in the price discovery phase. This means that prices will continue to change as investors and governments work through the initial concerns until prices stabilize, provided a stable point can be reached. Play accepts 126.0873% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7071% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Play Crypto Coin performing well and Play Cryptocurrency doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Play's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| XRP | 3.12 | (0.34) | 0.00 | (2.15) | 0.00 | 5.88 | 19.95 | |||
| SOL | 3.08 | (0.60) | 0.00 | 3.89 | 0.00 | 5.78 | 30.68 | |||
| TRX | 1.60 | (0.21) | 0.00 | 1.03 | 0.00 | 3.57 | 7.28 | |||
| STETH | 2.69 | (0.45) | 0.00 | (5.88) | 0.00 | 6.45 | 25.20 | |||
| HYPE | 4.50 | (0.75) | 0.00 | (0.51) | 0.00 | 10.49 | 23.61 | |||
| SUI | 4.37 | (0.81) | 0.00 | (1.16) | 0.00 | 11.02 | 27.83 | |||
| WBT | 2.05 | 0.49 | 0.16 | (0.49) | 1.83 | 5.34 | 22.80 | |||
| WLFI | 5.05 | 0.30 | 0.02 | (0.33) | 6.18 | 16.67 | 38.10 | |||
| LINK | 3.33 | (0.66) | 0.00 | (8.92) | 0.00 | 7.06 | 25.27 | |||
| XLM | 3.17 | (0.67) | 0.00 | 11.14 | 0.00 | 6.25 | 19.15 |
About Play Volatility
Volatility is a rate at which the price of Play or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Play may increase or decrease. In other words, similar to Play's beta indicator, it measures the risk of Play and helps estimate the fluctuations that may happen in a short period of time. So if prices of Play fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize Play's volatility to invest better
Higher Play's crypto volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Play crypto is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Play crypto volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Play investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Play's crypto can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Play's crypto relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Play Investment Opportunity
Play has a volatility of 126.09 and is 177.59 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Play. You can use Play to enhance the returns of your portfolios. The crypto coin experiences a normal upward fluctuation. Check odds of Play to be traded at $0.0439 in 90 days.Good diversification
The correlation between Play and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Play and DJI in the same portfolio, assuming nothing else is changed. Please note that Play is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.
Play Additional Risk Indicators
The analysis of Play's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Play's investment and either accepting that risk or mitigating it. Along with some common measures of Play crypto coin's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1038 | |||
| Market Risk Adjusted Performance | (2.52) | |||
| Mean Deviation | 4.23 | |||
| Semi Deviation | 4.32 | |||
| Downside Deviation | 5.6 | |||
| Coefficient Of Variation | 783.51 | |||
| Standard Deviation | 7.36 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential crypto coins, we recommend comparing similar cryptos with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Play Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Play as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Play's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Play's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Play.
When determining whether Play offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Play'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 Play Crypto. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Play. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in employment. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.