Chainlink Performance
| LINK Crypto | USD 14.75 0.06 0.41% |
The crypto shows a Beta (market volatility) of -1.72, which signifies a somewhat significant risk relative to the market. As returns on the market increase, returns on owning Chainlink are expected to decrease by larger amounts. On the other hand, during market turmoil, Chainlink is expected to outperform it.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Chainlink 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 fundamental 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 Chainlink shareholders. ...more
1 | Bitcoin Dips Below 96K, Ethereums ETH, Cardanos ADA, Dogecoin Tumble Over 10 percent in Crypto Correction - CoinDesk | 12/19/2024 |
2 | Trump and bitcoin BlackRock predicts another historic year for crypto - CNBC | 01/16/2025 |
3 | Bitcoin set for biggest weekly fall since FTX collapse in 2022 - Reuters | 02/28/2025 |
Chainlink |
Chainlink Relative Risk vs. Return Landscape
If you would invest 2,412 in Chainlink on December 1, 2024 and sell it today you would lose (937.00) from holding Chainlink or give up 38.85% of portfolio value over 90 days. Chainlink is generating negative expected returns and assumes 6.6059% volatility on return distribution over the 90 days horizon. Simply put, 58% of crypto coins are less volatile than Chainlink, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Chainlink Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Chainlink's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Chainlink, and traders can use it to determine the average amount a Chainlink'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 = -0.0838
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | LINK |
Estimated Market Risk
| 6.61 actual daily | 58 58% of assets are less volatile |
Expected Return
| -0.55 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.08 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Chainlink 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 Chainlink by adding Chainlink to a well-diversified portfolio.
About Chainlink Performance
By analyzing Chainlink's fundamental ratios, stakeholders can gain valuable insights into Chainlink's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Chainlink 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 Chainlink has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Chainlink is peer-to-peer digital currency powered by the Blockchain technology.| Chainlink generated a negative expected return over the last 90 days | |
| Chainlink has high historical volatility and very poor performance | |
| Latest headline from news.google.com: Bitcoin set for biggest weekly fall since FTX collapse in 2022 - Reuters |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Chainlink. 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.