21Shares Arbitrum (Netherlands) Performance
The entity shows a Beta (market volatility) of 0.11, which signifies not very significant fluctuations relative to the market. As returns on the market increase, 21Shares Arbitrum's returns are expected to increase less than the market. However, during the bear market, the loss of holding 21Shares Arbitrum is expected to be smaller as well.
Risk-Adjusted Performance
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Over the last 90 days 21Shares Arbitrum ETP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, 21Shares Arbitrum is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors. ...more
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21Shares Arbitrum Relative Risk vs. Return Landscape
If you would invest 973.00 in 21Shares Arbitrum ETP on August 28, 2024 and sell it today you would earn a total of 690.00 from holding 21Shares Arbitrum ETP or generate 70.91% return on investment over 90 days. 21Shares Arbitrum ETP is generating 1.0003% of daily returns and assumes 6.2142% volatility on return distribution over the 90 days horizon. Simply put, 55% of etfs are less volatile than 21Shares, and 81% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
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21Shares Arbitrum Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for 21Shares Arbitrum's investment risk. Standard deviation is the most common way to measure market volatility of etfs, such as 21Shares Arbitrum ETP, and traders can use it to determine the average amount a 21Shares Arbitrum's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = 0.161
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Estimated Market Risk
| 6.21 actual daily | 55 55% of assets are less volatile |
Expected Return
| 1.0 actual daily | 19 81% of assets have higher returns |
Risk-Adjusted Return
| 0.16 actual daily | 12 88% of assets perform better |
Based on monthly moving average 21Shares Arbitrum is performing at about 12% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of 21Shares Arbitrum by adding it to a well-diversified portfolio.