Litecoin Performance
| LTC Crypto | USD 102.78 2.04 1.95% |
The crypto secures a Beta (Market Risk) of -0.31, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Litecoin are expected to decrease at a much lower rate. During the bear market, Litecoin is likely to outperform the market.
Risk-Adjusted Performance
14 of 100
Weak | Strong |
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Litecoin are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Litecoin exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
Litecoin |
Litecoin Relative Risk vs. Return Landscape
If you would invest 6,436 in Litecoin on September 1, 2024 and sell it today you would earn a total of 3,737 from holding Litecoin or generate 58.06% return on investment over 90 days. Litecoin is generating 0.7967% of daily returns assuming 4.3039% volatility of returns over the 90 days investment horizon. Simply put, 38% of all crypto coins have less volatile historical return distribution than Litecoin, and 85% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
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Litecoin Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Litecoin's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Litecoin, and traders can use it to determine the average amount a Litecoin's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = 0.1851
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 4.3 actual daily | 38 62% of assets are more volatile |
Expected Return
| 0.8 actual daily | 15 85% of assets have higher returns |
Risk-Adjusted Return
| 0.19 actual daily | 14 86% of assets perform better |
Based on monthly moving average Litecoin is performing at about 14% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Litecoin by adding it to a well-diversified portfolio.
About Litecoin Performance
By analyzing Litecoin's fundamental ratios, stakeholders can gain valuable insights into Litecoin's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Litecoin has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Litecoin has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Litecoin is peer-to-peer digital currency powered by the Blockchain technology.| Litecoin appears to be risky and price may revert if volatility continues |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Litecoin. 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.