First Digital Volatility
| FDUSD Crypto | USD 1.00 0.00 0.00% |
First Digital is abnormally risky given 3 months investment horizon. First Digital USD secures Sharpe Ratio (or Efficiency) of 0.11, which denotes digital coin had a 0.11 % return per unit of risk over the last 3 months. We were able to break down four different technical indicators, which can help you to evaluate if expected returns of 13.85% are justified by taking the suggested risk. Use First Digital day typical price of 1.0 to evaluate coin specific risk that cannot be diversified away. Key indicators related to First Digital's volatility include:
90 Days Market Risk | Risk of Devaluation | 90 Days Economic Sensitivity |
First Digital Crypto Coin 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 First daily returns, and it is calculated using variance and standard deviation. We also use First's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of First Digital volatility.
First |
First Digital USD Crypto Coin Volatility Analysis
Volatility refers to the frequency at which First Digital crypto price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with First Digital's price changes. Investors will then calculate the volatility of First Digital's crypto coin to predict their future moves. A crypto that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A crypto coin with relatively stable price changes has low volatility. A highly volatile crypto 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 First Digital's volatility:
Historical Volatility
This type of crypto volatility measures First Digital's fluctuations based on previous trends. It's commonly used to predict First Digital's future behavior based on its past. However, it cannot conclusively determine the future direction of the crypto coin.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for First Digital's current market price. This means that the crypto will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on First Digital'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. First Digital USD 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.
First Digital Projected Return Density Against Market
Assuming the 90 days trading horizon First Digital has a beta that is very close to zero . This usually indicates the returns on DOW JONES INDUSTRIAL and First Digital do not appear to be highly-sensitive.Most traded cryptocurrencies are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or coin-specific or project-specific) risk. Unsystematic risk is the risk that events specific to First Digital project will adversely affect the coin's price. This type of risk can be diversified away by owning several different digital assets on different exchanges whose coin prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that First Digital's price will be affected by overall cryptocurrency 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 First crypto'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.
It does not look like First Digital's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
First Digital Crypto Coin Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of First Digital is 901.67. The daily returns are distributed with a variance of 15586.54 and standard deviation of 124.85. The mean deviation of First Digital USD is currently at 30.34. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 124.85 | |
Ir | Information ratio | 0.00 |
First Digital Crypto Coin Return Volatility
First Digital historical daily return volatility represents how much of First Digital crypto's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. Keep in mind that cryptocurrencies such as First Digital USD have only been around for a short time and are still in the price discovery phase. This means that prices will continue to change as investors and governments work through the initial concerns until prices stabilize, provided a stable point can be reached. First Digital USD accepts 124.8461% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8415% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About First Digital Volatility
Volatility is a rate at which the price of First Digital 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 First Digital may increase or decrease. In other words, similar to First's beta indicator, it measures the risk of First Digital and helps estimate the fluctuations that may happen in a short period of time. So if prices of First Digital 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.3 ways to utilize First Digital's volatility to invest better
Higher First Digital's crypto volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of First Digital USD crypto 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. First Digital USD crypto 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 First Digital USD investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in First Digital's crypto 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 First Digital's crypto relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
First Digital Investment Opportunity
First Digital USD has a volatility of 124.85 and is 148.63 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than First Digital. You can use First Digital USD to protect your portfolios against small market fluctuations. The crypto coin experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of First Digital to be traded at $0.99 in 90 days.Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
First Digital 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 First Digital 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. First Digital'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, First Digital'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 First Digital USD.
When determining whether First Digital USD offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of First Digital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of First Digital Usd Crypto. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Digital USD. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.