How does time weighted return compare to dollar weighted return when evaluating the performance of a cryptocurrency portfolio?

1 answers

• Nov 23, 2021 · 3 years ago
  Time weighted return and dollar weighted return are two different ways to evaluate the performance of a cryptocurrency portfolio. Time weighted return measures the performance of the portfolio over a specific period of time, taking into account the timing of investments and withdrawals. It is often used to evaluate the performance of portfolio managers. On the other hand, dollar weighted return measures the actual returns experienced by the investor, considering the timing and amount of their investments. It provides a more accurate reflection of the investor's experience. When evaluating a cryptocurrency portfolio, it is important to consider both measures and analyze them in conjunction with other performance indicators to get a comprehensive understanding of the portfolio's performance.
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