Aave Performance
| AAVE Crypto | USD 211.83 12.89 6.48% |
The crypto shows a Beta (market volatility) of -0.14, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Aave are expected to decrease at a much lower rate. During the bear market, Aave is likely to outperform the market.
Risk-Adjusted Performance
13 of 100
Weak | Strong |
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Aave are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Aave exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
Aave |
Aave Relative Risk vs. Return Landscape
If you would invest 11,878 in Aave on September 1, 2024 and sell it today you would earn a total of 9,305 from holding Aave or generate 78.34% return on investment over 90 days. Aave is generating 1.0873% of daily returns and assumes 6.4809% volatility on return distribution over the 90 days horizon. Simply put, 57% of crypto coins are less volatile than Aave, and 79% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Aave Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Aave's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Aave, and traders can use it to determine the average amount a Aave'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 = 0.1678
| Best Portfolio | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 6.48 actual daily | 57 57% of assets are less volatile |
Expected Return
| 1.09 actual daily | 21 79% of assets have higher returns |
Risk-Adjusted Return
| 0.17 actual daily | 13 87% of assets perform better |
Based on monthly moving average Aave is performing at about 13% 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 Aave by adding it to a well-diversified portfolio.
About Aave Performance
By analyzing Aave's fundamental ratios, stakeholders can gain valuable insights into Aave's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Aave 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 Aave has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Aave is peer-to-peer digital currency powered by the Blockchain technology.| Aave is way too risky over 90 days horizon | |
| Aave appears to be risky and price may revert if volatility continues |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aave. 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..