What is the impact of Jensen's Alpha formula on cryptocurrency investment strategies?

1 answers

• jingjingApr 13, 2025 · 3 months ago
  At BYDFi, we understand the importance of Jensen's Alpha formula in cryptocurrency investment strategies. It allows investors to evaluate the performance of their portfolios in a risk-adjusted manner. By comparing the excess return of a cryptocurrency portfolio to its expected return based on a benchmark, investors can assess whether their strategies are generating alpha or not. Positive alpha indicates that the portfolio is outperforming the market, while negative alpha suggests underperformance. This information can help investors make informed decisions about their investment strategies and potentially improve their returns. So, if you're looking to optimize your cryptocurrency investments, considering the impact of Jensen's Alpha formula is definitely a smart move.
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