Compound Governance Market Value
| COMP Crypto | USD 55.75 0.12 0.21% |
| Symbol | Compound |
Compound Governance 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Compound Governance's crypto coin what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Compound Governance.
| 04/08/2024 |
| 05/08/2024 |
If you would invest 0.00 in Compound Governance on April 8, 2024 and sell it all today you would earn a total of 0.00 from holding Compound Governance Token or generate 0.0% return on investment in Compound Governance over 30 days. Compound Governance is related to or competes with Solana, XRP, Open Network, Staked Ether, Avalanche, Chainlink, and Ethena. Compound Governance Token is peer-to-peer digital currency powered by the Blockchain technology.
Compound Governance Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Compound Governance's crypto coin current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Compound Governance Token upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 6.17 | |||
| Information Ratio | 0.0301 | |||
| Maximum Drawdown | 39.26 | |||
| Value At Risk | (10.84) | |||
| Potential Upside | 11.65 |
Compound Governance Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Compound Governance's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Compound Governance's standard deviation. In reality, there are many statistical measures that can use Compound Governance historical prices to predict the future Compound Governance's volatility.| Risk Adjusted Performance | 0.0353 | |||
| Jensen Alpha | 0.1855 | |||
| Total Risk Alpha | (0.40) | |||
| Sortino Ratio | 0.0308 | |||
| Treynor Ratio | 0.2385 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Compound Governance's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Compound Governance Token Backtested Returns
Compound Governance appears to be unusually volatile, given 3 months investment horizon. Compound Governance Token secures Sharpe Ratio (or Efficiency) of 0.0343, which signifies that digital coin had a 0.0343% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Compound Governance Token, which you can use to evaluate the volatility of coin. Please makes use of Compound Governance's Downside Deviation of 6.17, mean deviation of 4.4, and Risk Adjusted Performance of 0.0353 to double-check if our risk estimates are consistent with your expectations. The crypto shows a Beta (market volatility) of 1.07, which signifies a somewhat significant risk relative to the market. Compound Governance returns are very sensitive to returns on the market. As the market goes up or down, Compound Governance is expected to follow.
Auto-correlation | -0.01 |
Very weak reverse predictability
Compound Governance Token has very weak reverse predictability. Overlapping area represents the amount of predictability between Compound Governance time series from 8th of April 2024 to 23rd of April 2024 and 23rd of April 2024 to 8th of May 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Compound Governance Token price movement. The serial correlation of -0.01 indicates that just 1.0% of current Compound Governance price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.01 | |
| Spearman Rank Test | -0.47 | |
| Residual Average | 0.0 | |
| Price Variance | 2.16 |
Compound Governance Token lagged returns against current returns
Autocorrelation, which is Compound Governance crypto coin's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Compound Governance's crypto coin expected returns. We can calculate the autocorrelation of Compound Governance returns to help us make a trade decision. For example, suppose you find that Compound Governance has exhibited high autocorrelation historically, and you observe that the crypto coin is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Compound Governance regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Compound Governance crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Compound Governance crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Compound Governance crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Compound Governance Lagged Returns
When evaluating Compound Governance's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Compound Governance crypto coin have on its future price. Compound Governance autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Compound Governance autocorrelation shows the relationship between Compound Governance crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Compound Governance Token.
Regressed Prices |
| Timeline |
Pair Trading with Compound Governance
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Compound Governance position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Compound Governance will appreciate offsetting losses from the drop in the long position's value.Moving together with Compound Crypto Coin
| 0.78 | XRP | XRP | PairCorr |
The ability to find closely correlated positions to Compound Governance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compound Governance when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Compound Governance - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Compound Governance Token to buy it.
The correlation of Compound Governance is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Compound Governance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Compound Governance Token moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Compound Governance can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Compound Governance Correlation, Compound Governance Volatility and Investing Opportunities module to complement your research on Compound Governance. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Compound Governance technical crypto coin analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, crypto market cycles, or different charting patterns.