Algorand Performance
| ALGO Crypto | USD 0.17 0.02 10.53% |
The crypto shows a Beta (market volatility) of 0.87, which signifies possible diversification benefits within a given portfolio. Algorand returns are very sensitive to returns on the market. As the market goes up or down, Algorand is expected to follow.
Risk-Adjusted Performance
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Compared to the overall equity markets, risk-adjusted returns on investments in Algorand are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Algorand may actually be approaching a critical reversion point that can send shares even higher in May 2024. ...more
1 | StarkWare Unveils New Stwo Cryptographic Prover Thats Blazingly Fast - CoinDesk | 02/29/2024 |
Algorand |
Algorand Relative Risk vs. Return Landscape
If you would invest 18.00 in Algorand on January 17, 2024 and sell it today you would lose (1.00) from holding Algorand or give up 5.56% of portfolio value over 90 days. Algorand is generating 0.1025% of daily returns and assumes 6.2222% volatility on return distribution over the 90 days horizon. Simply put, 55% of crypto coins are less volatile than Algorand, and 98% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
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Algorand Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Algorand's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Algorand, and traders can use it to determine the average amount a Algorand'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 = 0.0165
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| Cash | Small Risk | Average Risk | ALGO | Huge Risk |
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Estimated Market Risk
| 6.22 actual daily | 54 54% of assets are less volatile |
Expected Return
| 0.1 actual daily | 1 99% of assets have higher returns |
Risk-Adjusted Return
| 0.02 actual daily | 1 99% of assets perform better |
Based on monthly moving average Algorand is performing at about 1% 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 Algorand by adding it to a well-diversified portfolio.
About Algorand Performance
To evaluate Algorand Crypto Coin as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Algorand generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Algorand Crypto Coin's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Algorand market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Algorand's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.Algorand is peer-to-peer digital currency powered by the Blockchain technology.| Algorand had very high historical volatility over the last 90 days | |
| Algorand 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 Algorand. Also, note that the market value of any cryptocurrency could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.