Definition

The Monthly versus Daily Volatility Ratio is a measure that compares the realized volatility of a cryptocurrency asset over a monthly period to its daily realized volatility. This ratio helps investors assess how volatility changes when observed over longer versus shorter time frames. By utilizing this data, users can access precise calculations of this ratio, offering valuable insights into the asset's volatility patterns and risk characteristics. This metric is particularly useful for understanding the stability of an asset's price movements and making informed decisions in portfolio management and risk assessment.

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Details

This endpoint returns the relationship/comparison of Parkinson realized volatility calculation using one monthly calculation versus 30 daily calculations. The reason these calculations might differ is due to mean-reversion, intra-month volatility and trending markets.

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Availability

/Monthly versus Daily Volatility Ratio

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Frequently Asked Questions

How can the Monthly versus Daily Volatility Ratio from Amberdata help investors assess the stability of a cryptocurrency's price movements over different time frames?

• This question arises because investors and analysts use this metric to understand how volatility scales when comparing daily to monthly periods. By leveraging this Amberdata endpoint, users can gain insights into whether a cryptocurrency's volatility is consistent or varies significantly across these time frames, aiding in risk assessment and strategic decision-making for portfolio management.