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

avatarSofia LAZARDec 26, 2021 · 3 years ago1 answers

When evaluating the volatility of digital currencies, what are the main descriptive statistics metrics that should be taken into consideration?

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

1 answers

  • avatarDec 26, 2021 · 3 years ago
    When evaluating the volatility of digital currencies, it's important to consider various descriptive statistics metrics. One such metric is the standard deviation, which measures the dispersion of price data points from the average price. A higher standard deviation indicates higher volatility. Another metric to consider is the range, which represents the difference between the highest and lowest prices within a given time period. Additionally, the average true range (ATR) can provide insights into the average volatility over a specific period. Other metrics like mean, median, and skewness can also provide valuable information about the distribution and asymmetry of price movements. By analyzing these key descriptive statistics metrics, one can assess the volatility of digital currencies with a more comprehensive perspective.