What is the correlation between z scores and the volatility of cryptocurrencies?

3 answers

• Cash LundgrenApr 12, 2021 · 4 years ago
  Z scores are statistical measures that help determine the volatility of cryptocurrencies. They are calculated by subtracting the mean from the observed value and dividing it by the standard deviation. A higher z score indicates higher volatility, while a lower z score suggests lower volatility. By analyzing z scores, investors and traders can assess the risk associated with a particular cryptocurrency and make informed decisions based on its volatility. It is important to note that z scores alone may not provide a complete picture of the volatility, and other factors should also be considered.
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• Ritter SykesSep 19, 2021 · 4 years ago
  The correlation between z scores and the volatility of cryptocurrencies is significant. Z scores provide a standardized measure of volatility, allowing investors to compare the volatility of different cryptocurrencies. A positive correlation between z scores and volatility implies that as z scores increase, the volatility of cryptocurrencies also increases. Conversely, a negative correlation suggests that as z scores decrease, the volatility decreases. This information can be valuable for investors looking to diversify their portfolios and manage risk effectively in the cryptocurrency market.
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• Kevin VanDerMeidJul 18, 2020 · 5 years ago
  At BYDFi, we understand the importance of z scores in assessing the volatility of cryptocurrencies. Z scores provide valuable insights into the risk associated with different cryptocurrencies, helping traders make informed decisions. By analyzing z scores, traders can identify cryptocurrencies with higher volatility and potentially higher returns. However, it is important to note that z scores should not be the sole factor in decision-making. Other fundamental and technical analysis should also be considered to make well-rounded investment choices.
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