How does semi-deviation affect cryptocurrency investments?

3 answers

• Bill PhamJul 23, 2025 · a month ago
  Semi-deviation is a statistical measure that calculates the volatility of an investment portfolio based on negative returns. In the context of cryptocurrency investments, it helps investors understand the downside risk associated with their portfolio. By focusing on negative returns only, semi-deviation provides a more accurate picture of the potential losses. This information is crucial for risk management and portfolio diversification strategies. It allows investors to assess the stability and resilience of their cryptocurrency investments in adverse market conditions.
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• Fitzgerald OlsonApr 24, 2023 · 2 years ago
  When it comes to cryptocurrency investments, semi-deviation is like a reality check. It shows you the true extent of the downside risk. While standard deviation considers both positive and negative returns, semi-deviation only looks at the negative side. This is important because in the volatile world of cryptocurrencies, the downside risk can be significant. By understanding the semi-deviation of your portfolio, you can make more informed decisions and adjust your investment strategy accordingly.
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• Nitish ShekhawatAug 29, 2021 · 4 years ago
  At BYDFi, we believe that considering semi-deviation is essential for cryptocurrency investors. It provides a more accurate assessment of the risk associated with investments. By focusing on negative returns, semi-deviation helps investors identify potential vulnerabilities in their portfolios. This information can be used to optimize risk-adjusted returns and improve overall portfolio performance. So, if you want to make smarter investment decisions in the cryptocurrency market, paying attention to semi-deviation is a must.
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