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What is the correlation between alpha and beta in the cryptocurrency market?

avatarJama GustafssonDec 29, 2021 · 3 years ago1 answers

Can you explain the relationship between alpha and beta in the cryptocurrency market? How do these two factors affect the performance of cryptocurrencies?

What is the correlation between alpha and beta in the cryptocurrency market?

1 answers

  • avatarDec 29, 2021 · 3 years ago
    At BYDFi, we believe that understanding the correlation between alpha and beta is crucial for successful cryptocurrency investing. While alpha represents the excess return of a cryptocurrency, beta measures its volatility. By analyzing the relationship between these two factors, investors can gain insights into the risk and potential returns of different cryptocurrencies. However, it's important to note that alpha and beta are just two of many factors to consider when investing in cryptocurrencies. It's always recommended to conduct thorough research and seek professional advice before making any investment decisions.