What is the correlation between exotic beta and cryptocurrency returns?

3 answers

• Burak ÇobanJun 18, 2025 · 6 days ago
  Exotic beta refers to the measure of risk associated with an asset or investment that is not part of the traditional market. In the context of cryptocurrencies, exotic beta can be used to assess the correlation between the returns of digital currencies and other non-traditional assets. It helps investors understand how the performance of cryptocurrencies may be influenced by factors outside the traditional financial markets. By analyzing the exotic beta of cryptocurrencies, investors can gain insights into the potential risks and rewards associated with these digital assets.
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• Balamurali MFeb 11, 2023 · 2 years ago
  The correlation between exotic beta and cryptocurrency returns can vary depending on various factors. Cryptocurrencies are known for their high volatility, and this volatility can be influenced by factors such as market sentiment, regulatory changes, technological advancements, and macroeconomic events. Exotic beta can provide a measure of how these external factors impact the returns of cryptocurrencies. It is important to note that the correlation between exotic beta and cryptocurrency returns is not a definitive indicator of future performance, as the cryptocurrency market is highly speculative and unpredictable.
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• Shedrack JosephDec 19, 2022 · 3 years ago
  At BYDFi, we have conducted extensive research on the correlation between exotic beta and cryptocurrency returns. Our findings suggest that there is a moderate correlation between exotic beta and the returns of digital currencies. However, it is important to consider other factors such as market trends, investor sentiment, and technological developments when analyzing the performance of cryptocurrencies. It is always recommended to diversify your investment portfolio and consult with a financial advisor before making any investment decisions in the cryptocurrency market.
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