Optimism Performance
| OP Crypto | USD 2.51 0.31 14.09% |
The crypto holds a Beta of 0.8, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Optimism's returns are expected to increase less than the market. However, during the bear market, the loss of holding Optimism is expected to be smaller as well.
Risk-Adjusted Performance
13 of 100
Weak | Strong |
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Optimism are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Optimism exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more
1 | Expect FireworksBlackRock CEO Issues Crazy Fed Warning As A China Tsunami Is Predicted To Hit Crypto And The Bitcoin Price - Forbes | 10/01/2024 |
Optimism |
Optimism Relative Risk vs. Return Landscape
If you would invest 142.00 in Optimism on August 30, 2024 and sell it today you would earn a total of 109.00 from holding Optimism or generate 76.76% return on investment over 90 days. Optimism is currently producing 1.0776% returns and takes up 6.2635% volatility of returns over 90 trading days. Put another way, 55% of traded crypto coins are less volatile than Optimism, and 79% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Optimism Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Optimism's investment risk. Standard deviation is the most common way to measure market volatility of crypto coins, such as Optimism, and traders can use it to determine the average amount a Optimism'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 = 0.172
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 6.26 actual daily | 55 55% of assets are less volatile |
Expected Return
| 1.08 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 Optimism 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 Optimism by adding it to a well-diversified portfolio.
About Optimism Performance
By analyzing Optimism's fundamental ratios, stakeholders can gain valuable insights into Optimism's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Optimism 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 Optimism has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Optimism is peer-to-peer digital currency powered by the Blockchain technology.| Optimism is way too risky over 90 days horizon | |
| Optimism appears to be risky and price may revert if volatility continues |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Optimism. Also, note that the market value of any cryptocurrency could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.