What are the key descriptive statistics to consider when analyzing the volatility of digital currencies?

1 answers

• Quoc PhanNov 21, 2023 · 2 years ago
  When analyzing the volatility of digital currencies, it's important to consider key descriptive statistics that provide insights into their price movements. One such statistic is the standard deviation, which measures the dispersion of price data around the average. A higher standard deviation indicates higher volatility. Another important statistic is the average true range (ATR), which measures the average price range over a specific period of time. A higher ATR suggests higher volatility. Additionally, the beta coefficient can be used to assess the volatility of a digital currency relative to the overall market. A higher beta indicates higher volatility. By analyzing these descriptive statistics, investors can gain valuable insights into the volatility of digital currencies and make more informed trading decisions.
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