Aave Performance
| AAVE Crypto | USD 318.95 5.65 1.74% |
The crypto shows a Beta (market volatility) of 0.0767, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Aave's returns are expected to increase less than the market. However, during the bear market, the loss of holding Aave is expected to be smaller as well.
Risk-Adjusted Performance
Solid
Weak | Strong |
Compared to the overall equity markets, risk-adjusted returns on investments in Aave are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Aave exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
1 | How Trump is building a crypto empire out of thin air - Politico | 05/28/2025 |
Aave |
Aave Relative Risk vs. Return Landscape
If you would invest 15,821 in Aave on April 21, 2025 and sell it today you would earn a total of 16,074 from holding Aave or generate 101.6% return on investment over 90 days. Aave is generating 1.2082% of daily returns and assumes 5.4997% volatility on return distribution over the 90 days horizon. Simply put, 49% of crypto coins are less volatile than Aave, and 76% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Aave Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Aave's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Aave, and traders can use it to determine the average amount a Aave'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 = 0.2197
| Best Portfolio | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | AAVE | |||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Estimated Market Risk
| 5.5 actual daily | 49 51% of assets are more volatile |
Expected Return
| 1.21 actual daily | 24 76% of assets have higher returns |
Risk-Adjusted Return
| 0.22 actual daily | 17 83% of assets perform better |
Based on monthly moving average Aave is performing at about 17% 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 Aave by adding it to a well-diversified portfolio.
About Aave Performance
By analyzing Aave's fundamental ratios, stakeholders can gain valuable insights into Aave's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Aave has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Aave has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Aave is peer-to-peer digital currency powered by the Blockchain technology.| Aave is way too risky over 90 days horizon | |
| Aave appears to be risky and price may revert if volatility continues | |
| Latest headline from news.google.com: Trump signs 1st major federal cryptocurrency bill into law - ABC News - Breaking News, Latest News and Videos |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aave. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.