What is the relationship between jensens alpha and cryptocurrency investing?

3 answers

• gumanJul 18, 2023 · 3 years ago
  Jensen's alpha is a measure of risk-adjusted performance that compares the actual return of an investment to the expected return based on its level of risk. In the context of cryptocurrency investing, Jensen's alpha can be used to evaluate the performance of a cryptocurrency investment relative to its risk. A positive Jensen's alpha indicates that the investment has outperformed its expected return, while a negative Jensen's alpha indicates underperformance. It provides insights into whether a cryptocurrency investment has generated excess returns compared to the risk it carries.
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• kayla daviesJun 25, 2025 · 7 months ago
  Jensen's alpha is like a report card for your cryptocurrency investments. It tells you how well your investments have performed relative to the risk you took. If your investments have a positive Jensen's alpha, it means you've beaten the market and generated excess returns. On the other hand, a negative Jensen's alpha suggests that your investments have underperformed. So, if you're looking to evaluate the performance of your cryptocurrency investments, Jensen's alpha is a useful metric to consider.
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• Toprak AlkızAug 25, 2021 · 4 years ago
  When it comes to cryptocurrency investing, Jensen's alpha can be a valuable tool for assessing the performance of your investments. It takes into account the risk associated with a particular cryptocurrency investment and compares its actual returns to the expected returns based on that risk. This metric helps investors determine whether their investments have generated excess returns or have underperformed. By analyzing Jensen's alpha, investors can make more informed decisions about their cryptocurrency portfolios and potentially improve their overall investment performance.
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