Bitwise Crypto Industry Etf Volatility
| BITQ Etf | USD 20.70 1.60 8.38% |
Bitwise Crypto appears to be not too volatile, given 3 months investment horizon. Bitwise Crypto Industry secures Sharpe Ratio (or Efficiency) of 0.2, which signifies that the etf had a 0.2% return per unit of risk over the last 3 months. By analyzing Bitwise Crypto's technical indicators, you can evaluate if the expected return of 0.94% is justified by implied risk. Please makes use of Bitwise Crypto's Risk Adjusted Performance of 0.1462, mean deviation of 3.35, and Downside Deviation of 3.77 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Bitwise Crypto's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Bitwise Crypto Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Bitwise daily returns, and it is calculated using variance and standard deviation. We also use Bitwise's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bitwise Crypto volatility.
Bitwise |
Downward market volatility can be a perfect environment for investors who play the long game with Bitwise Crypto. They may decide to buy additional shares of Bitwise Crypto at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Bitwise Etf
| 0.97 | GBTC | Grayscale Bitcoin Trust | PairCorr |
| 0.97 | BITO | ProShares Bitcoin Buyout Trend | PairCorr |
| 1.0 | BLOK | Amplify Transformational | PairCorr |
| 0.95 | BLCN | Siren Nasdaq NexGen | PairCorr |
| 0.96 | SPBC | Simplify Equity PLUS | PairCorr |
| 0.97 | BTC | Grayscale Bitcoin Mini | PairCorr |
| 1.0 | DAPP | VanEck Digital Trans | PairCorr |
Bitwise Crypto Market Sensitivity And Downside Risk
Bitwise Crypto's beta coefficient measures the volatility of Bitwise etf compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Bitwise etf's returns against your selected market. In other words, Bitwise Crypto's beta of 3.29 provides an investor with an approximation of how much risk Bitwise Crypto etf can potentially add to one of your existing portfolios. Bitwise Crypto Industry shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bitwise Crypto's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bitwise Crypto's etf price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Bitwise Crypto Industry Demand TrendCheck current 90 days Bitwise Crypto correlation with market (Dow Jones Industrial)Bitwise Beta |
Bitwise standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 4.69 |
It is essential to understand the difference between upside risk (as represented by Bitwise Crypto's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bitwise Crypto's daily returns or price. Since the actual investment returns on holding a position in bitwise etf tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Bitwise Crypto.
Bitwise Crypto Industry Etf Volatility Analysis
Volatility refers to the frequency at which Bitwise Crypto etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Bitwise Crypto's price changes. Investors will then calculate the volatility of Bitwise Crypto's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Bitwise Crypto's volatility:
Historical Volatility
This type of etf volatility measures Bitwise Crypto's fluctuations based on previous trends. It's commonly used to predict Bitwise Crypto's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Bitwise Crypto's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Bitwise Crypto's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Bitwise Crypto Industry Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Bitwise Crypto Projected Return Density Against Market
Given the investment horizon of 90 days the etf has the beta coefficient of 3.2939 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Bitwise Crypto will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Bitwise Crypto or Exchange Traded Concepts sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Bitwise Crypto's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Bitwise etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Bitwise Crypto Industry has an alpha of 0.4419, implying that it can generate a 0.44 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Bitwise Crypto Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Bitwise Crypto Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Bitwise Crypto is 499.43. The daily returns are distributed with a variance of 22.04 and standard deviation of 4.69. The mean deviation of Bitwise Crypto Industry is currently at 3.41. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.44 | |
β | Beta against Dow Jones | 3.29 | |
σ | Overall volatility | 4.69 | |
Ir | Information ratio | 0.15 |
Bitwise Crypto Etf Return Volatility
Bitwise Crypto historical daily return volatility represents how much of Bitwise Crypto etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The ETF inherits 4.6949% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Bitwise Crypto Volatility
Volatility is a rate at which the price of Bitwise Crypto or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bitwise Crypto may increase or decrease. In other words, similar to Bitwise's beta indicator, it measures the risk of Bitwise Crypto and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bitwise Crypto fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.The index was designed by Bitwise Index Services, LLC to measure the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele . Bitwise Crypto is traded on NYSEARCA Exchange in the United States.
Bitwise Crypto's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Bitwise Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bitwise Crypto's price varies over time.
3 ways to utilize Bitwise Crypto's volatility to invest better
Higher Bitwise Crypto's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Bitwise Crypto Industry etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Bitwise Crypto Industry etf volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Bitwise Crypto Industry investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Bitwise Crypto's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Bitwise Crypto's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Bitwise Crypto Investment Opportunity
Bitwise Crypto Industry has a volatility of 4.69 and is 6.01 times more volatile than Dow Jones Industrial. 41 percent of all equities and portfolios are less risky than Bitwise Crypto. You can use Bitwise Crypto Industry to enhance the returns of your portfolios. The etf experiences a very speculative upward sentiment. Check odds of Bitwise Crypto to be traded at $25.88 in 90 days.Very weak diversification
The correlation between Bitwise Crypto Industry and DJI is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and DJI in the same portfolio, assuming nothing else is changed.
Bitwise Crypto Additional Risk Indicators
The analysis of Bitwise Crypto's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Bitwise Crypto's investment and either accepting that risk or mitigating it. Along with some common measures of Bitwise Crypto etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1462 | |||
| Market Risk Adjusted Performance | 0.2595 | |||
| Mean Deviation | 3.35 | |||
| Semi Deviation | 3.3 | |||
| Downside Deviation | 3.77 | |||
| Coefficient Of Variation | 556.03 | |||
| Standard Deviation | 4.63 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Bitwise Crypto Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Bitwise Crypto as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Bitwise Crypto's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Bitwise Crypto's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Bitwise Crypto Industry.
When determining whether Bitwise Crypto Industry is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Bitwise Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Bitwise Crypto Industry Etf. Highlighted below are key reports to facilitate an investment decision about Bitwise Crypto Industry Etf: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bitwise Crypto Industry. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
The market value of Bitwise Crypto Industry is measured differently than its book value, which is the value of Bitwise that is recorded on the company's balance sheet. Investors also form their own opinion of Bitwise Crypto's value that differs from its market value or its book value, called intrinsic value, which is Bitwise Crypto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bitwise Crypto's market value can be influenced by many factors that don't directly affect Bitwise Crypto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bitwise Crypto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bitwise Crypto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bitwise Crypto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.