Compound Alpha and Beta Analysis
| COMP Crypto | USD 41.50 0.71 1.68% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Compound. It also helps investors analyze the systematic and unsystematic risks associated with investing in Compound over a specified time horizon. Remember, high Compound's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Beta 1.59 | Alpha (1.15) | Risk 6.17 | Sharpe Ratio (0.19) | Expected Return (1.16) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Compound |
Compound Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Compound market risk premium is the additional return an investor will receive from holding Compound long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Compound. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Compound's performance over market.| α | -1.15 | β | 1.59 |
Compound Price Momentum Analysis
Compound Market Price Analysis
Market price analysis indicators help investors to evaluate how Compound crypto coin reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Compound shares will generate the highest return on investment. By understating and applying Compound crypto coin market price indicators, traders can identify Compound position entry and exit signals to maximize returns.
Compound Return and Market Media
The median price of Compound for the period between Mon, Dec 16, 2024 and Sun, Mar 16, 2025 is 70.44 with a coefficient of variation of 25.92. The daily time series for the period is distributed with a sample standard deviation of 17.65, arithmetic mean of 68.11, and mean deviation of 15.16. The Crypto did not receive any noticable media coverage during the period. Price Growth (%) |
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About Compound Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Compound or other cryptos. Alpha measures the amount that position in Compound has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
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 Compound 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.
Build Portfolio with Compound
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Compound Backtesting, Portfolio Optimization, Compound Correlation, Cryptocurrency Center, Compound Volatility, Compound History and analyze Compound Performance. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Compound 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.