What is the standard deviation of market returns for cryptocurrencies?

3 answers

• StormyJan 12, 2024 · a year ago
  The standard deviation of market returns for cryptocurrencies is a statistical measure that quantifies the volatility or dispersion of the returns of a cryptocurrency market. It measures how much the returns of a cryptocurrency market vary from the average return. The higher the standard deviation, the more volatile the market is considered to be. It is calculated by taking the square root of the variance of the returns. A higher standard deviation indicates that the returns are more spread out and unpredictable, while a lower standard deviation indicates more stable and predictable returns. This measure is important for investors and traders to assess the risk associated with investing in cryptocurrencies.
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• Balle GloverSep 09, 2023 · 2 years ago
  The standard deviation of market returns for cryptocurrencies is a way to measure the risk and volatility of the market. It tells you how much the returns of cryptocurrencies deviate from their average return. A higher standard deviation means that the returns are more spread out and unpredictable, indicating a higher level of risk. On the other hand, a lower standard deviation means that the returns are more stable and predictable. It is calculated by taking the square root of the variance of the returns. Investors and traders use this measure to assess the potential risk and reward of investing in cryptocurrencies.
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• EduardoMarcianoDec 02, 2022 · 3 years ago
  The standard deviation of market returns for cryptocurrencies is an important metric to understand the volatility of the market. It measures the extent to which the returns of cryptocurrencies deviate from their average return. A higher standard deviation indicates a higher level of volatility and risk, while a lower standard deviation indicates a more stable market. It is calculated by taking the square root of the variance of the returns. This measure helps investors and traders assess the potential risks and rewards of investing in cryptocurrencies. However, it's important to note that the standard deviation is just one of many factors to consider when making investment decisions in the cryptocurrency market.
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