Aave Performance
| AAVE Crypto | USD 172.96 0.18 0.10% |
The crypto shows a Beta (market volatility) of -2.14, which signifies a somewhat significant risk relative to the market. As returns on the market increase, returns on owning Aave are expected to decrease by larger amounts. On the other hand, during market turmoil, Aave is expected to outperform it.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Aave 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 Aave shareholders. ...more
Aave |
Aave Relative Risk vs. Return Landscape
If you would invest 31,497 in Aave on December 18, 2024 and sell it today you would lose (14,201) from holding Aave or give up 45.09% of portfolio value over 90 days. Aave is generating negative expected returns and assumes 7.1793% volatility on return distribution over the 90 days horizon. Simply put, 64% of crypto coins are less volatile than Aave, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Aave Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Aave's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Aave, and traders can use it to determine the average amount a Aave'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 = -0.0971
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | AAVE |
Estimated Market Risk
| 7.18 actual daily | 64 64% of assets are less volatile |
Expected Return
| -0.7 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.1 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Aave 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 Aave by adding Aave to a well-diversified portfolio.
About Aave Performance
By analyzing Aave's fundamental ratios, stakeholders can gain valuable insights into Aave's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Aave 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 Aave has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Aave is peer-to-peer digital currency powered by the Blockchain technology.| Aave generated a negative expected return over the last 90 days | |
| Aave has high historical volatility and very poor performance |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aave. 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.