LocalBitcoins Bitcoin is abnormally risky given 2 months investment horizon. LocalBitcoins Bitcoin USD has Sharpe Ratio of 0.1309 which conveys that ##coin2## had 0.1309% of return per unit of risk over the last 2 months. Our philosophy towards estimating volatility of a crypto is to use LocalBitcoins Bitcoin USD market data together with coin specific technical indicators. We found twenty-one different technical indicators which can help you to evaluate if expected returns of 2.3548% are justified by taking the suggested risk. Use LocalBitcoins Bitcoin USD Risk Adjusted Performance of 0.0982, Downside Deviation of 15.43 and Mean Deviation of 12.18 to evaluate coin specific risk that cannot be diversified away.
60 Days Market Risk
Chance of Distress in 24 months
60 Days Economic Sensitivity
Hyperactively responds to market trends
|Horizon||30 Days Login to change|
LocalBitcoins Bitcoin Market Sensitivity
|As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, LocalBitcoins Bitcoin will likely underperform. 2 Months Beta |Analyze LocalBitcoins Bitcoin USD Demand TrendCheck current 30 days LocalBitcoins Bitcoin correlation with market (DOW)|
β = 2.4313
LocalBitcoins Bitcoin Central Daily Price Deviation
LocalBitcoins Bitcoin USD Technical Analysis
LocalBitcoins Bitcoin Projected Return Density Against MarketAssuming 30 trading days horizon, the crypto has beta coefficient of 2.4313 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, LocalBitcoins Bitcoin will likely underperform. In addition to that, The company has an alpha of 1.808 implying that it can potentially generate 1.808% excess return over DOW after adjusting for the inherited market risk (beta).
Predicted Return Density
Assuming 30 trading days horizon, the coefficient of variation of LocalBitcoins Bitcoin is 764.21. The daily returns are destributed with a variance of 323.84 and standard deviation of 18.0. The mean deviation of LocalBitcoins Bitcoin USD is currently at 12.21. For similar time horizon, the selected benchmark (DOW) has volatility of 0.91
|Alpha over DOW||=||1.81|
|Beta against DOW||=||2.43|
LocalBitcoins Bitcoin Return Volatilitythe entity accepts 17.9954% volatility on return distribution over the 30 days horizon. the entity inherits 0.9349% risk (volatility on return distribution) over the 30 days horizon.
LocalBitcoins Bitcoin Investment Opportunity
LocalBitcoins Bitcoin USD has a volatility of 18.0 and is 19.35 times more volatile than DOW. 96% of all equities and portfolios are less risky than LocalBitcoins Bitcoin. Compared to the overall equity markets, volatility of historical daily returns of LocalBitcoins Bitcoin USD is higher than 96 (%) of all global equities and portfolios over the last 30 days. Use LocalBitcoins Bitcoin USD to protect your portfolios against small markets fluctuations. The crypto experiences very speculative upward sentiment. Check odds of LocalBitcoins Bitcoin to be traded at $11256.92 in 30 days. . As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, LocalBitcoins Bitcoin will likely underperform.
LocalBitcoins Bitcoin correlation with market
LocalBitcoins Bitcoin Current Risk Indicators
|Risk Adjusted Performance||0.0982|
|Market Risk Adjusted Performance||0.7192|
|Coefficient Of Variation||1030.27|
LocalBitcoins Bitcoin Suggested Diversification Pairs