Arbitrum Performance
| ARB Crypto | USD 0.96 0.01 1.03% |
The crypto shows a Beta (market volatility) of 1.26, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Arbitrum will likely underperform.
Risk-Adjusted Performance
16 of 100
Weak | Strong |
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Arbitrum are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Arbitrum exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
Arbitrum |
Arbitrum Relative Risk vs. Return Landscape
If you would invest 51.00 in Arbitrum on August 30, 2024 and sell it today you would earn a total of 45.00 from holding Arbitrum or generate 88.24% return on investment over 90 days. Arbitrum is generating 1.1441% of daily returns assuming 5.6112% volatility of returns over the 90 days investment horizon. Simply put, 49% of all crypto coins have less volatile historical return distribution than Arbitrum, and 78% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Arbitrum Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Arbitrum's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Arbitrum, and traders can use it to determine the average amount a Arbitrum'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 = 0.2039
| Best Portfolio | Best Equity | |||
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| Small Returns | ARB | |||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Estimated Market Risk
| 5.61 actual daily | 49 51% of assets are more volatile |
Expected Return
| 1.14 actual daily | 22 78% of assets have higher returns |
Risk-Adjusted Return
| 0.2 actual daily | 16 84% of assets perform better |
Based on monthly moving average Arbitrum is performing at about 16% 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 Arbitrum by adding it to a well-diversified portfolio.
About Arbitrum Performance
By analyzing Arbitrum's fundamental ratios, stakeholders can gain valuable insights into Arbitrum's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Arbitrum 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 Arbitrum has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Arbitrum is peer-to-peer digital currency powered by the Blockchain technology.| Arbitrum is way too risky over 90 days horizon | |
| Arbitrum has some characteristics of a very speculative cryptocurrency | |
| Arbitrum 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 Arbitrum. 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.