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What are the best practices for measuring and analyzing portfolio alpha in the context of digital currencies?

Marsha LinderMay 31, 2024 · a year ago1 answers

Can you provide some insights on the best practices for measuring and analyzing portfolio alpha specifically in the context of digital currencies? I'm interested in understanding how to evaluate the performance of a digital currency portfolio and determine its risk-adjusted returns.

1 answers

  • samrudhi daniDec 25, 2023 · 2 years ago
    At BYDFi, we believe that the best practices for measuring and analyzing portfolio alpha in the context of digital currencies involve a combination of quantitative and qualitative analysis. Quantitative analysis includes evaluating key performance indicators such as returns, volatility, and risk-adjusted measures. This can be done using various statistical tools and models. On the other hand, qualitative analysis involves assessing the fundamental factors that may impact the performance of digital currencies, such as technological advancements, regulatory developments, and market sentiment. By combining both quantitative and qualitative analysis, investors can gain a comprehensive understanding of their portfolio's alpha and make more informed investment decisions.

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