Algorand Market Value
| ALGO Crypto | USD 0.11 0.01 8.33% |
| Symbol | Algorand |
Algorand '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 Algorand'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 Algorand.
| 10/03/2024 |
| 11/02/2024 |
If you would invest 0.00 in Algorand on October 3, 2024 and sell it all today you would earn a total of 0.00 from holding Algorand or generate 0.0% return on investment in Algorand over 30 days. Algorand is related to or competes with Ethereum, Solana, XRP, Toncoin, Staked Ether, Sui, and Cardano. Algorand is peer-to-peer digital currency powered by the Blockchain technology.
Algorand 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 Algorand'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 Algorand upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.02) | |||
| Maximum Drawdown | 23.38 | |||
| Value At Risk | (8.33) | |||
| Potential Upside | 8.33 |
Algorand Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Algorand's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Algorand's standard deviation. In reality, there are many statistical measures that can use Algorand historical prices to predict the future Algorand's volatility.| Risk Adjusted Performance | 0.006 | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.38) | |||
| Treynor Ratio | (0.03) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Algorand'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.
Algorand Backtested Returns
At this point, Algorand is very risky. Algorand secures Sharpe Ratio (or Efficiency) of 0.0238, which signifies that digital coin had a 0.0238% return per unit of standard deviation over the last 3 months. We have found twenty-one technical indicators for Algorand, which you can use to evaluate the volatility of coin. Please confirm Algorand's mean deviation of 2.52, and Risk Adjusted Performance of 0.006 to double-check if the risk estimate we provide is consistent with the expected return of 0.11%. The crypto shows a Beta (market volatility) of 0.76, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Algorand's returns are expected to increase less than the market. However, during the bear market, the loss of holding Algorand is expected to be smaller as well.
Auto-correlation | 0.56 |
Modest predictability
Algorand has modest predictability. Overlapping area represents the amount of predictability between Algorand time series from 3rd of October 2024 to 18th of October 2024 and 18th of October 2024 to 2nd of November 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 Algorand price movement. The serial correlation of 0.56 indicates that roughly 56.0% of current Algorand price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.56 | |
| Spearman Rank Test | -0.28 | |
| Residual Average | 0.0 | |
| Price Variance | 0.0 |
Algorand lagged returns against current returns
Autocorrelation, which is Algorand 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 Algorand's crypto coin expected returns. We can calculate the autocorrelation of Algorand returns to help us make a trade decision. For example, suppose you find that Algorand 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 |
Algorand 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 Algorand crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Algorand crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Algorand crypto coin over time.
Current vs Lagged Prices |
| Timeline |
Algorand Lagged Returns
When evaluating Algorand's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Algorand crypto coin have on its future price. Algorand 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, Algorand autocorrelation shows the relationship between Algorand crypto coin current value and its past values and can show if there is a momentum factor associated with investing in Algorand.
Regressed Prices |
| Timeline |
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Check out Algorand Correlation, Algorand Volatility and Investing Opportunities module to complement your research on Algorand. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Algorand 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.