Avalanche Market Value
| AVAX Crypto | USD 39.56 1.40 3.67% |
| Symbol | Avalanche |
Avalanche 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Avalanche's crypto coin what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Avalanche.
| 05/05/2022 |
| 04/24/2024 |
If you would invest 0.00 in Avalanche on May 5, 2022 and sell it all today you would earn a total of 0.00 from holding Avalanche or generate 0.0% return on investment in Avalanche over 720 days. Avalanche is related to or competes with Ethereum, Solana, XRP, Open Network, Staked Ether, Cardano, and Ethena. Avalanche is peer-to-peer digital currency powered by the Blockchain technology.
Avalanche Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Avalanche's crypto coin current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Avalanche upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 5.57 | |||
| Information Ratio | 0.0779 | |||
| Maximum Drawdown | 43.53 | |||
| Value At Risk | (11.02) | |||
| Potential Upside | 8.19 |
Avalanche Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Avalanche's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Avalanche's standard deviation. In reality, there are many statistical measures that can use Avalanche historical prices to predict the future Avalanche's volatility.| Risk Adjusted Performance | 0.0658 | |||
| Jensen Alpha | 0.4185 | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | 0.0869 | |||
| Treynor Ratio | 0.3082 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Avalanche's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Avalanche Backtested Returns
Avalanche appears to be unusually volatile, given 3 months investment horizon. Avalanche secures Sharpe Ratio (or Efficiency) of 0.0808, which signifies that digital coin had a 0.0808% return per unit of standard deviation over the last 3 months. By analyzing Avalanche's technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please makes use of Avalanche's mean deviation of 4.33, and Risk Adjusted Performance of 0.0658 to double-check if our risk estimates are consistent with your expectations. The crypto shows a Beta (market volatility) of 1.83, which signifies 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, Avalanche will likely underperform.
Auto-correlation | -0.29 |
Weak reverse predictability
Avalanche has weak reverse predictability. Overlapping area represents the amount of predictability between Avalanche time series from 5th of May 2022 to 30th of April 2023 and 30th of April 2023 to 24th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Avalanche price movement. The serial correlation of -0.29 indicates that nearly 29.0% of current Avalanche price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.29 | |
| Spearman Rank Test | -0.48 | |
| Residual Average | 0.0 | |
| Price Variance | 212.1 |
Avalanche lagged returns against current returns
Autocorrelation, which is Avalanche crypto coin's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Avalanche's crypto coin expected returns. We can calculate the autocorrelation of Avalanche returns to help us make a trade decision. For example, suppose you find that Avalanche has exhibited high autocorrelation historically, and you observe that the crypto coin is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Avalanche regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Avalanche crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Avalanche crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Avalanche crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Avalanche Lagged Returns
When evaluating Avalanche's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Avalanche crypto coin have on its future price. Avalanche autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Avalanche autocorrelation shows the relationship between Avalanche crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Avalanche.
Regressed Prices |
| Timeline |
Some cryptocurrency investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. However, unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Avalanche in the overall investment community. So, suppose investors can accurately measure the crypto's market sentiment. In that case, they can use it for their benefit. For example, some tools provided by cryptocurrency exchanges to gauge market sentiment could be utilized to time the market in a somewhat predictable way.
Pair Trading with Avalanche
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Avalanche position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Avalanche will appreciate offsetting losses from the drop in the long position's value.Moving together with Avalanche Crypto Coin
| 0.75 | ETH | Ethereum | PairCorr |
| 0.81 | SOL | Solana | PairCorr |
| 0.86 | XRP | XRP | PairCorr |
The ability to find closely correlated positions to Avalanche could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Avalanche when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Avalanche - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Avalanche to buy it.
The correlation of Avalanche is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Avalanche moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Avalanche moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Avalanche can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Avalanche Correlation, Avalanche Volatility and Investing Opportunities module to complement your research on Avalanche. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Avalanche technical crypto coin analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, crypto market cycles, or different charting patterns.