What are the implications of alpha and beta in cryptocurrency investing?

1 answers

• eamgioMay 15, 2024 · a year ago
  In cryptocurrency investing, alpha and beta are essential factors to consider. Alpha measures the risk-adjusted return of an investment, indicating its ability to outperform the market. A positive alpha suggests that the investment has generated excess returns, while a negative alpha indicates underperformance. Beta, on the other hand, measures the investment's correlation with the overall market. A beta greater than 1 implies higher volatility than the market, while a beta less than 1 suggests lower volatility. By analyzing alpha and beta, investors can assess the potential returns and risks associated with their cryptocurrency investments, allowing them to make informed decisions.
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