Polkadot Performance
| DOT Crypto | USD 4.35 0.17 4.07% |
The crypto holds a Beta of -0.45, which implies possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Polkadot are expected to decrease at a much lower rate. During the bear market, Polkadot is likely to outperform the market.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Polkadot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Polkadot shareholders. ...more
Polkadot |
Polkadot Relative Risk vs. Return Landscape
If you would invest 694.00 in Polkadot on December 18, 2024 and sell it today you would lose (259.00) from holding Polkadot or give up 37.32% of portfolio value over 90 days. Polkadot is producing return of less than zero assuming 5.1726% volatility of returns over the 90 days investment horizon. Simply put, 46% of all crypto coins have less volatile historical return distribution than Polkadot, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Polkadot Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Polkadot's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Polkadot, and traders can use it to determine the average amount a Polkadot'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 = -0.1165
| Best Portfolio | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | DOT |
Estimated Market Risk
| 5.17 actual daily | 46 54% of assets are more volatile |
Expected Return
| -0.6 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.12 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Polkadot is not performing at its full potential. However, 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 Polkadot by adding Polkadot to a well-diversified portfolio.
About Polkadot Performance
By analyzing Polkadot's fundamental ratios, stakeholders can gain valuable insights into Polkadot's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Polkadot has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Polkadot has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Polkadot is peer-to-peer digital currency powered by the Blockchain technology.| Polkadot generated a negative expected return over the last 90 days | |
| Polkadot has high historical volatility and very poor performance |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Polkadot. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.