Litecoin Market Value
| LTC Crypto | USD 71.36 2.55 3.71% |
| Symbol | Litecoin |
Litecoin '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 Litecoin'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 Litecoin.
| 06/26/2024 |
| 07/26/2024 |
If you would invest 0.00 in Litecoin on June 26, 2024 and sell it all today you would earn a total of 0.00 from holding Litecoin or generate 0.0% return on investment in Litecoin over 30 days. Litecoin is related to or competes with Staked Ether, Wrapped Bitcoin, XMR, Tether, Chainlink, USD Coin, and FTX Token. Litecoin is peer-to-peer digital currency powered by the Blockchain technology.
Litecoin 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 Litecoin'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 Litecoin upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 37.41 | |||
| Value At Risk | (7.11) | |||
| Potential Upside | 4.85 |
Litecoin Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Litecoin's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Litecoin's standard deviation. In reality, there are many statistical measures that can use Litecoin historical prices to predict the future Litecoin's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.14) | |||
| Total Risk Alpha | (0.69) | |||
| Treynor Ratio | 0.2859 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Litecoin'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.
Litecoin Backtested Returns
Litecoin has Sharpe Ratio of -0.11, which conveys that digital coin had a -0.11% return per unit of risk over the last 3 months. Litecoin exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Litecoin's Risk Adjusted Performance of (0.02), mean deviation of 2.67, and Standard Deviation of 4.71 to check out the risk estimate we provide. The crypto secures a Beta (Market Risk) of -0.66, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Litecoin are expected to decrease at a much lower rate. During the bear market, Litecoin is likely to outperform the market.
Auto-correlation | -0.3 |
Weak reverse predictability
Litecoin has weak reverse predictability. Overlapping area represents the amount of predictability between Litecoin time series from 26th of June 2024 to 11th of July 2024 and 11th of July 2024 to 26th of July 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 Litecoin price movement. The serial correlation of -0.3 indicates that nearly 30.0% of current Litecoin price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.3 | |
| Spearman Rank Test | 0.02 | |
| Residual Average | 0.0 | |
| Price Variance | 2.39 |
Litecoin lagged returns against current returns
Autocorrelation, which is Litecoin 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 Litecoin's crypto coin expected returns. We can calculate the autocorrelation of Litecoin returns to help us make a trade decision. For example, suppose you find that Litecoin 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 |
Litecoin 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 Litecoin crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Litecoin crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Litecoin crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Litecoin Lagged Returns
When evaluating Litecoin's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Litecoin crypto coin have on its future price. Litecoin 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, Litecoin autocorrelation shows the relationship between Litecoin crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Litecoin.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Information and Resources on Investing in Litecoin Crypto Coin
When determining whether Litecoin offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Litecoin'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 Litecoin Crypto.Check out Litecoin Correlation, Litecoin Volatility and Investing Opportunities module to complement your research on Litecoin. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Litecoin 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.