Litecoin Market Value
| LTC Crypto | USD 86.47 1.59 1.81% |
| Symbol | Litecoin |
Litecoin '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 Litecoin'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 Litecoin.
| 02/27/2024 |
| 04/27/2024 |
If you would invest 0.00 in Litecoin on February 27, 2024 and sell it all today you would earn a total of 0.00 from holding Litecoin or generate 0.0% return on investment in Litecoin over 60 days. Litecoin is related to or competes with Bitcoin, Dogecoin, Bitcoin Cash, Ethereum Classic, Monero, Arweave, and Conflux Network. Litecoin is peer-to-peer digital currency powered by the Blockchain technology.
Litecoin 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 Litecoin'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 Litecoin upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 5.29 | |||
| Information Ratio | 0.0809 | |||
| Maximum Drawdown | 28.62 | |||
| Value At Risk | (7.89) | |||
| Potential Upside | 7.94 |
Litecoin Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Litecoin's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Litecoin's standard deviation. In reality, there are many statistical measures that can use Litecoin historical prices to predict the future Litecoin's volatility.| Risk Adjusted Performance | 0.0705 | |||
| Jensen Alpha | 0.3421 | |||
| Total Risk Alpha | (0.15) | |||
| Sortino Ratio | 0.0758 | |||
| Treynor Ratio | 0.2758 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Litecoin'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.
Litecoin Backtested Returns
Litecoin appears to be very risky, given 3 months investment horizon. Litecoin has Sharpe Ratio of 0.1, which conveys that digital coin had a 0.1% return per unit of risk over the last 3 months. By analyzing Litecoin's technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please exercise Litecoin's Mean Deviation of 3.24, risk adjusted performance of 0.0705, and Downside Deviation of 5.29 to check out if our risk estimates are consistent with your expectations. The crypto secures a Beta (Market Risk) of 1.74, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Litecoin will likely underperform.
Auto-correlation | -0.24 |
Weak reverse predictability
Litecoin has weak reverse predictability. Overlapping area represents the amount of predictability between Litecoin time series from 27th of February 2024 to 28th of March 2024 and 28th of March 2024 to 27th of April 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 Litecoin price movement. The serial correlation of -0.24 indicates that over 24.0% of current Litecoin price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.24 | |
| Spearman Rank Test | -0.2 | |
| Residual Average | 0.0 | |
| Price Variance | 90.27 |
Litecoin lagged returns against current returns
Autocorrelation, which is Litecoin 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 Litecoin's crypto coin expected returns. We can calculate the autocorrelation of Litecoin returns to help us make a trade decision. For example, suppose you find that Litecoin 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 |
Litecoin 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 Litecoin crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Litecoin crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Litecoin crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Litecoin Lagged Returns
When evaluating Litecoin's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Litecoin crypto coin have on its future price. Litecoin 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, Litecoin autocorrelation shows the relationship between Litecoin crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Litecoin.
Regressed Prices |
| Timeline |
Some cryptocurrency investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. However, unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Litecoin in the overall investment community. So, suppose investors can accurately measure the crypto's market sentiment. In that case, they can use it for their benefit. For example, some tools provided by cryptocurrency exchanges to gauge market sentiment could be utilized to time the market in a somewhat predictable way.
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Try AI Portfolio ArchitectCheck out Litecoin Correlation, Litecoin Volatility and Investing Opportunities module to complement your research on Litecoin. Note that the Litecoin information on this page should be used as a complementary analysis to other Litecoin's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Litecoin 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.