How does absolute return differ from relative return in the context of digital currencies?

5 answers

• Naidu GiirdharMar 01, 2022 · 4 years ago
  Absolute return and relative return are two different ways to measure the performance of digital currencies. Absolute return refers to the actual gain or loss of an investment over a specific period of time. It is a straightforward calculation that shows the percentage increase or decrease in the value of a digital asset. On the other hand, relative return compares the performance of a digital currency to a benchmark or index, such as Bitcoin or Ethereum. It indicates how well the digital asset performed relative to the market or a specific sector. While absolute return focuses on the actual return, relative return provides a comparison to evaluate the performance of a digital currency in a broader context.
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• My Treasure Valley HandymanJun 23, 2025 · 4 months ago
  When it comes to digital currencies, absolute return measures the actual profit or loss generated by an investment. It shows the percentage increase or decrease in the value of a digital asset over a specific period of time. Relative return, on the other hand, compares the performance of a digital currency to a benchmark or index. It helps investors assess how well the digital asset performed relative to the market or a specific sector. Both absolute return and relative return are important metrics for evaluating the performance of digital currencies, but they provide different perspectives on the investment's profitability.
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• Stanley WichmannFeb 10, 2022 · 4 years ago
  In the context of digital currencies, absolute return and relative return are two ways to evaluate the performance of investments. Absolute return measures the actual gain or loss of a digital asset over a specific period of time. It focuses on the absolute value of the return, regardless of how the market or other assets performed. On the other hand, relative return compares the performance of a digital currency to a benchmark or index. It provides a comparison to assess the investment's performance relative to the market or a specific sector. Both absolute return and relative return are useful in analyzing the performance of digital currencies, but they offer different insights into the investment's success.
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• Prajjwal DohareNov 02, 2022 · 3 years ago
  Absolute return and relative return are two different concepts used to evaluate the performance of digital currencies. Absolute return measures the actual gain or loss of an investment, expressed as a percentage, over a specific period of time. It provides a clear picture of the investment's profitability. Relative return, on the other hand, compares the performance of a digital currency to a benchmark or index. It helps investors understand how well the investment performed relative to the market or a specific sector. Both absolute return and relative return are important metrics in assessing the performance of digital currencies, and investors should consider both when evaluating their investments.
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• EachicApr 25, 2025 · 6 months ago
  When it comes to digital currencies, absolute return and relative return are two different ways to assess the performance of investments. Absolute return measures the actual profit or loss generated by a digital asset over a specific period of time. It focuses on the absolute value of the return, regardless of how other assets or the market performed. Relative return, on the other hand, compares the performance of a digital currency to a benchmark or index. It provides a comparison to evaluate the investment's performance relative to the market or a specific sector. Both absolute return and relative return are important indicators for investors to consider when analyzing the performance of digital currencies.
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