High correlation within crypto as an asset class is because market treats them all undifferentiated stores of value (inflation avoidance). Alpha happens when you correctly predict which coins win/survive
Assume index of coin flip is 50/50 outcome. A single flip of a real coin has zero correlation with any past event. As number of flips approaches infinity, correlation with the “index” approaches 1.
Hypothetically - under what scenarios can you see a decoupling of BTC & the equity markets. I think it takes a doomsday scenario where all confidence is lost in USTT & BTC becomes the de facto flight to quality store of value…
Appreciate you guys and all that you do, quick question on FTM, NEAR, AVAX & DOT. Do you still see these coins having some good upside or would you just roll the money in them to ETH/BTC/LINK
Beta of a coinflip, my guess is 0.5. It's not zero because 50% of the time you'd be flipping in the 'direction' as the index, heads for positive direction, negative would be the opposite of positive direction. So halfway between no correlation and 100% correlation.
Really appreciate you guys publishing posts like this that are probably super basic for you. Thank you
Beta of a coin flip = my networth after aping DCU coins
Goblin town down to zero
gonna need ketamine therapy for all the PAIN
High correlation within crypto as an asset class is because market treats them all undifferentiated stores of value (inflation avoidance). Alpha happens when you correctly predict which coins win/survive
Assume index of coin flip is 50/50 outcome. A single flip of a real coin has zero correlation with any past event. As number of flips approaches infinity, correlation with the “index” approaches 1.
Coin flip should have a beta of 0 relative to S&P since there's no correlation. Heads to tails should be -1.
Hypothetically - under what scenarios can you see a decoupling of BTC & the equity markets. I think it takes a doomsday scenario where all confidence is lost in USTT & BTC becomes the de facto flight to quality store of value…
What's the beta on biotech and DCU coins rn?
For the coin flip, outcome is unrelated and will show no correlation to the S&P therefore the beta is 0.
Appreciate you guys and all that you do, quick question on FTM, NEAR, AVAX & DOT. Do you still see these coins having some good upside or would you just roll the money in them to ETH/BTC/LINK
Interesting that BTC correlates more to equities than it does to gold. Given narrative of digital gold. HODLers = goldbugs?
Beta of a coinflip, my guess is 0.5. It's not zero because 50% of the time you'd be flipping in the 'direction' as the index, heads for positive direction, negative would be the opposite of positive direction. So halfway between no correlation and 100% correlation.