WisdomTree Bitcoin (Netherlands) Performance

BTCW Etf   25.39  354.76  93.32%   
The entity maintains a market beta of -73.47, which attests to a somewhat significant risk relative to the market. As returns on the market increase, returns on owning WisdomTree Bitcoin are expected to decrease by larger amounts. On the other hand, during market turmoil, WisdomTree Bitcoin is expected to outperform it.

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Bitcoin are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, WisdomTree Bitcoin unveiled solid returns over the last few months and may actually be approaching a breakup point. ...more
  

WisdomTree Bitcoin Relative Risk vs. Return Landscape

If you would invest  1,648  in WisdomTree Bitcoin on October 27, 2024 and sell it today you would earn a total of  891.00  from holding WisdomTree Bitcoin or generate 54.07% return on investment over 90 days. WisdomTree Bitcoin is generating 42.4945% of daily returns and assumes 216.8213% volatility on return distribution over the 90 days horizon. Simply put, majority of traded equity instruments are less risky than WisdomTree on the basis of their historical return distribution, and most equity instruments are likely to generate higher returns than the company over the next 90 trading days.
  Expected Return   
       Risk  
Assuming the 90 days trading horizon WisdomTree Bitcoin is expected to generate 251.97 times more return on investment than the market. However, the company is 251.97 times more volatile than its market benchmark. It trades about 0.2 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.09 per unit of risk.

WisdomTree Bitcoin Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for WisdomTree Bitcoin's investment risk. Standard deviation is the most common way to measure market volatility of etfs, such as WisdomTree Bitcoin, and traders can use it to determine the average amount a WisdomTree Bitcoin'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 = 0.196

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Estimated Market Risk

 216.82
  actual daily
96
96% of assets are less volatile

Expected Return

 5.01
  actual daily
96
96% of assets have lower returns

Risk-Adjusted Return

 0.2
  actual daily
15
85% of assets perform better
Based on monthly moving average WisdomTree Bitcoin is performing at about 15% of its full potential. 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 WisdomTree Bitcoin by adding it to a well-diversified portfolio.
WisdomTree Bitcoin is way too risky over 90 days horizon
WisdomTree Bitcoin appears to be risky and price may revert if volatility continues