Chainlink Market Value
| LINK Crypto | USD 11.13 0.12 1.09% |
| Symbol | Chainlink |
Chainlink '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 Chainlink'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 Chainlink.
| 06/02/2024 |
| 08/31/2024 |
If you would invest 0.00 in Chainlink on June 2, 2024 and sell it all today you would earn a total of 0.00 from holding Chainlink or generate 0.0% return on investment in Chainlink over 90 days. Chainlink is related to or competes with Solana, XRP, Open Network, Staked Ether, TRON, Avalanche, and Wrapped Bitcoin. Chainlink is peer-to-peer digital currency powered by the Blockchain technology.
Chainlink 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 Chainlink'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 Chainlink upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.15) | |||
| Maximum Drawdown | 22.92 | |||
| Value At Risk | (7.66) | |||
| Potential Upside | 7.07 |
Chainlink Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Chainlink's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Chainlink's standard deviation. In reality, there are many statistical measures that can use Chainlink historical prices to predict the future Chainlink's volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.78) | |||
| Total Risk Alpha | (1.28) | |||
| Treynor Ratio | (0.38) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Chainlink'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.
Chainlink Backtested Returns
Chainlink secures Sharpe Ratio (or Efficiency) of -0.12, which signifies that digital coin had a -0.12% return per unit of standard deviation over the last 3 months. Chainlink exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Chainlink's risk adjusted performance of (0.09), and Mean Deviation of 3.51 to double-check the risk estimate we provide. The crypto shows a Beta (market volatility) of 1.58, 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, Chainlink will likely underperform.
Auto-correlation | 0.71 |
Good predictability
Chainlink has good predictability. Overlapping area represents the amount of predictability between Chainlink time series from 2nd of June 2024 to 17th of July 2024 and 17th of July 2024 to 31st of August 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 Chainlink price movement. The serial correlation of 0.71 indicates that around 71.0% of current Chainlink price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.71 | |
| Spearman Rank Test | 0.6 | |
| Residual Average | 0.0 | |
| Price Variance | 1.86 |
Chainlink lagged returns against current returns
Autocorrelation, which is Chainlink 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 Chainlink's crypto coin expected returns. We can calculate the autocorrelation of Chainlink returns to help us make a trade decision. For example, suppose you find that Chainlink 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 |
Chainlink 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 Chainlink crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Chainlink crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Chainlink crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Chainlink Lagged Returns
When evaluating Chainlink's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Chainlink crypto coin have on its future price. Chainlink 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, Chainlink autocorrelation shows the relationship between Chainlink crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Chainlink.
Regressed Prices |
| Timeline |
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Additional Information and Resources on Investing in Chainlink Crypto Coin
When determining whether Chainlink offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Chainlink'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 Chainlink Crypto.Check out Chainlink Correlation, Chainlink Volatility and Investing Opportunities module to complement your research on Chainlink. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Chainlink 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.