Optimism Performance

OP Crypto  USD 0.70  0.02  2.78%   
The crypto holds a Beta of -0.3, which implies possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Optimism are expected to decrease at a much lower rate. During the bear market, Optimism is likely to outperform the market.

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Optimism are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Optimism is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders. ...more
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Exclusive Ripple Seeks a U.S. Banking License, Adding to List of Crypto Companies - WSJ
07/02/2025
  

Optimism Relative Risk vs. Return Landscape

If you would invest  76.00  in Optimism on April 26, 2025 and sell it today you would lose (6.00) from holding Optimism or give up 7.89% of portfolio value over 90 days. Optimism is currently producing 0.0914% returns and takes up 6.6948% volatility of returns over 90 trading days. Put another way, 59% of traded crypto coins are less volatile than Optimism, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
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Assuming the 90 days horizon Optimism is expected to generate 1.97 times less return on investment than the market. In addition to that, the company is 8.57 times more volatile than its market benchmark. It trades about 0.01 of its total potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.23 per unit of volatility.

Optimism Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Optimism's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Optimism, and traders can use it to determine the average amount a Optimism'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 = 0.0136

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Estimated Market Risk

 6.69
  actual daily
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59% of assets are less volatile

Expected Return

 0.09
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99% of assets have higher returns

Risk-Adjusted Return

 0.01
  actual daily
1
99% of assets perform better
Based on monthly moving average Optimism is performing at about 1% 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 Optimism by adding it to a well-diversified portfolio.

About Optimism Performance

By analyzing Optimism's fundamental ratios, stakeholders can gain valuable insights into Optimism's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Optimism 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 Optimism has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Optimism is peer-to-peer digital currency powered by the Blockchain technology.
Optimism had very high historical volatility over the last 90 days
Optimism has some characteristics of a very speculative cryptocurrency
Latest headline from news.google.com: Exclusive Ripple Seeks a U.S. Banking License, Adding to List of Crypto Companies - WSJ
When determining whether Optimism offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Optimism'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 Optimism Crypto.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Optimism. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Please note, there is a significant difference between Optimism's coin value and its market price as these two are different measures arrived at by different means. Cryptocurrency investors typically determine Optimism value by looking at such factors as its true mass adoption, usability, application, safety as well as its ability to resist fraud and manipulation. On the other hand, Optimism's price is the amount at which it trades on the cryptocurrency exchange or other digital marketplace that truly represents its supply and demand.