The Tron (TRX) Sharpe Ratio suggests the cryptocurrency’s price may be far from overheating, a sign that the coin could have more upside potential.
Tron Sharpe Ratio Is Still Significantly Below Overheating Zone
In a CryptoQuant Quicktake post, an analyst has talked about the latest trend in the Sharpe Ratio of Tron. The “Sharpe Ratio” refers to an indicator that compares the returns of an asset against the risk associated with it.
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The numerator in the ratio, the ‘returns’ portion, is defined as the difference between the average return of the coin and the risk-free return (that is, the theoretical return involved with an asset carrying zero risk) over a given period. The denominator, the ‘risk’ part, is the asset’s standard deviation of returns over
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