Enjin Coin Volatility
| ENJ Crypto | USD 0.19 0.01 5.00% |
Enjin Coin appears to be unusually volatile, given 3 months investment horizon. Enjin Coin secures Sharpe Ratio (or Efficiency) of 0.0725, which denotes digital coin had a 0.0725% return per unit of risk over the last 3 months. We have found twenty-five technical indicators for Enjin Coin, which you can use to evaluate the volatility of coin. Please utilize Enjin Coin's Semi Deviation of 4.74, coefficient of variation of 1378.62, and Standard Deviation of 6.33 to check if our risk estimates are consistent with your expectations. Key indicators related to Enjin Coin's volatility include:
90 Days Market Risk | Risk of Devaluation | 90 Days Economic Sensitivity |
Enjin Coin 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 Enjin daily returns, and it is calculated using variance and standard deviation. We also use Enjin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Enjin Coin volatility.
Enjin |
Enjin Coin Crypto Coin Volatility Analysis
Volatility refers to the frequency at which Enjin Coin crypto price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Enjin Coin's price changes. Investors will then calculate the volatility of Enjin Coin'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 Enjin Coin's volatility:
Historical Volatility
This type of crypto volatility measures Enjin Coin's fluctuations based on previous trends. It's commonly used to predict Enjin Coin'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 Enjin Coin'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 Enjin Coin'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. Enjin Coin 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.
Enjin Coin Projected Return Density Against Market
Assuming the 90 days trading horizon Enjin Coin has a beta that is very close to zero suggesting the returns on DOW JONES INDUSTRIAL and Enjin Coin 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 Enjin Coin 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 Enjin Coin'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 Enjin 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 Enjin Coin's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
Enjin Coin Crypto Coin Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Enjin Coin is 1378.62. The daily returns are distributed with a variance of 40.1 and standard deviation of 6.33. The mean deviation of Enjin Coin is currently at 4.55. 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 | 6.33 | |
Ir | Information ratio | 0.06 |
Enjin Coin Crypto Coin Return Volatility
Enjin Coin historical daily return volatility represents how much of Enjin Coin 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 Enjin Coin 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. Enjin Coin assumes 6.3325% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.751% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Enjin Coin Volatility
Volatility is a rate at which the price of Enjin Coin 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 Enjin Coin may increase or decrease. In other words, similar to Enjin's beta indicator, it measures the risk of Enjin Coin and helps estimate the fluctuations that may happen in a short period of time. So if prices of Enjin Coin 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 Enjin Coin's volatility to invest better
Higher Enjin Coin's crypto volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Enjin Coin 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. Enjin Coin 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 Enjin Coin investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Enjin Coin'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 Enjin Coin's crypto relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Enjin Coin Investment Opportunity
Enjin Coin has a volatility of 6.33 and is 8.44 times more volatile than Dow Jones Industrial. 56 percent of all equities and portfolios are less risky than Enjin Coin. You can use Enjin Coin to protect your portfolios against small market fluctuations. The crypto coin experiences a very speculative upward sentiment. Check odds of Enjin Coin to be traded at $0.1805 in 90 days.Enjin Coin Additional Risk Indicators
The analysis of Enjin Coin's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Enjin Coin's investment and either accepting that risk or mitigating it. Along with some common measures of Enjin Coin crypto coin's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0635 | |||
| Mean Deviation | 4.55 | |||
| Semi Deviation | 4.74 | |||
| Downside Deviation | 8.04 | |||
| Coefficient Of Variation | 1378.62 | |||
| Standard Deviation | 6.33 | |||
| Variance | 40.1 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential crypto coins, we recommend comparing similar cryptos with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Enjin Coin 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 Enjin Coin 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. Enjin Coin'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, Enjin Coin'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 Enjin Coin.
When determining whether Enjin Coin offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enjin Coin'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 Enjin Coin Crypto. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Enjin Coin. 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.