Sandbox Volatility
| SAND Crypto | USD 0.61 0.01 1.61% |
Sandbox is exceptionally volatile given 3 months investment horizon. Sandbox owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.21, which indicates digital coin had a 0.21% return per unit of risk over the last 3 months. We were able to break down twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.69% are justified by taking the suggested risk. Use Sandbox Coefficient Of Variation of 504.35, semi deviation of 4.29, and Risk Adjusted Performance of 0.1606 to evaluate coin specific risk that cannot be diversified away. Key indicators related to Sandbox's volatility include:
30 Days Market Risk | Risk of Devaluation | 30 Days Economic Sensitivity |
Sandbox Crypto Coin volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Sandbox daily returns, and it is calculated using variance and standard deviation. We also use Sandbox's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sandbox volatility.
Sandbox |
Sandbox Crypto Coin Volatility Analysis
Volatility refers to the frequency at which Sandbox crypto price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sandbox's price changes. Investors will then calculate the volatility of Sandbox's crypto coin to predict their future moves. A crypto that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A crypto coin with relatively stable price changes has low volatility. A highly volatile crypto is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Sandbox's volatility:
Historical Volatility
This type of crypto volatility measures Sandbox's fluctuations based on previous trends. It's commonly used to predict Sandbox's future behavior based on its past. However, it cannot conclusively determine the future direction of the crypto coin.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Sandbox's current market price. This means that the crypto will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sandbox's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Sandbox Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Sandbox Projected Return Density Against Market
Assuming the 90 days trading horizon Sandbox has a beta of 0.9982 . This usually implies The Sandbox market returns are highly-sensitive to returns on the market. As the market goes up or down, Sandbox is expected to follow.Most traded cryptocurrencies are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or coin-specific or project-specific) risk. Unsystematic risk is the risk that events specific to Sandbox project will adversely affect the coin's price. This type of risk can be diversified away by owning several different digital assets on different exchanges whose coin prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sandbox's price will be affected by overall cryptocurrency market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sandbox crypto's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The Sandbox has an alpha of 1.4619, implying that it can generate a 1.46 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
Sandbox Crypto Coin Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Sandbox is 479.3. The daily returns are distributed with a variance of 65.69 and standard deviation of 8.11. The mean deviation of The Sandbox is currently at 5.02. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.
α | Alpha over Dow Jones | 1.46 | |
β | Beta against Dow Jones | 1.00 | |
σ | Overall volatility | 8.11 | |
Ir | Information ratio | 0.18 |
Sandbox Crypto Coin Return Volatility
Sandbox historical daily return volatility represents how much of Sandbox crypto's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. Keep in mind that cryptocurrencies such as The Sandbox have only been around for a short time and are still in the price discovery phase. This means that prices will continue to change as investors and governments work through the initial concerns until prices stabilize, provided a stable point can be reached. The Sandbox accepts 8.1052% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sandbox Volatility
Volatility is a rate at which the price of Sandbox or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sandbox may increase or decrease. In other words, similar to Sandbox's beta indicator, it measures the risk of Sandbox and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sandbox fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize Sandbox's volatility to invest better
Higher Sandbox's crypto volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sandbox crypto is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Sandbox crypto volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Sandbox investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sandbox's crypto can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Sandbox's crypto relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sandbox Investment Opportunity
The Sandbox has a volatility of 8.11 and is 10.4 times more volatile than Dow Jones Industrial. 72 percent of all equities and portfolios are less risky than Sandbox. You can use The Sandbox to protect your portfolios against small market fluctuations. The crypto coin experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Sandbox to be traded at $0.5917 in 90 days.Average diversification
The correlation between The Sandbox and DJI is 0.1 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Sandbox and DJI in the same portfolio, assuming nothing else is changed. Please note that The Sandbox is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.
Sandbox Additional Risk Indicators
The analysis of Sandbox's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Sandbox's investment and either accepting that risk or mitigating it. Along with some common measures of Sandbox crypto coin's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1606 | |||
| Market Risk Adjusted Performance | 1.59 | |||
| Mean Deviation | 5.02 | |||
| Semi Deviation | 4.29 | |||
| Downside Deviation | 6.69 | |||
| Coefficient Of Variation | 504.35 | |||
| Standard Deviation | 8.03 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential crypto coins, we recommend comparing similar cryptos with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Sandbox Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Sandbox as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Sandbox's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Sandbox's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to The Sandbox.
When determining whether Sandbox offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sandbox's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of The Sandbox Crypto. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in The Sandbox. 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.