What are the key factors to consider when analyzing the sterling ratio for cryptocurrencies?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we believe that the key factors to consider when analyzing the sterling ratio for cryptocurrencies include the cryptocurrency's historical returns, volatility, and correlation with other assets. Historical returns provide insights into the past performance of the cryptocurrency, while volatility measures the price fluctuations and potential risks. Correlation with other assets helps assess the diversification benefits of adding the cryptocurrency to an investment portfolio. Additionally, it is important to consider the time period over which the sterling ratio is calculated, as shorter time frames may not accurately reflect the cryptocurrency's overall performance. By considering these factors, investors can gain a better understanding of the risk-adjusted returns offered by cryptocurrencies and make informed investment decisions.
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