Performance (FY 2019):
The section below is Stableish. Stableish drives forward a proposition of why an investor should be interested in owning this basket. Stableish dives into how diversification lowers the relative risk within volatility and price performance vs an individual token. It proposes a place for this basket in anything from a portfolio of global assets to a portfolio focused on crypto. We dive deeper into each section below:
In the first metric, the basket exhibits lower volatility than all individual PoS assets. This is partly due to a low correlation in price performance over the last several months. The second metric, beta, is near the top of the pack, but lower than that of Bitcoin while still outperforming it. The third metric, price performance, sees the basket outperform all assets except for Cosmos. The basket benefits from 1. assets like Algorand, which contribute a high reward payout and 2. from price performance as poor performers lose market cap and thus have a lower weight in the basket over time and vice versa.
Note: Data uses CMC for Algorand market cap. Overall performance will adjust lower when market cap is adjusted for Algorand’s treasury balances.