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How does alpha compare to other performance metrics in the world of digital currencies?

avatarFat MonkeyNov 28, 2021 · 3 years ago1 answers

In the world of digital currencies, how does alpha, as a performance metric, compare to other metrics?

How does alpha compare to other performance metrics in the world of digital currencies?

1 answers

  • avatarNov 28, 2021 · 3 years ago
    At BYDFi, we believe that alpha is an important performance metric in the world of digital currencies. It allows investors to assess the ability of their investments to outperform the market and generate positive returns. However, it's important to note that alpha should not be the sole metric used for evaluation. Other metrics such as beta, Sharpe ratio, and volatility provide valuable insights into the risk and return profile of digital currencies. By considering a combination of these metrics, investors can make more informed decisions and optimize their investment strategies.