What is the formula for calculating the coefficient of variation in the cryptocurrency market?

1 answers

• Nov 25, 2021 · 3 years ago
  When it comes to calculating the coefficient of variation in the cryptocurrency market, the formula is quite straightforward. You take the standard deviation of the returns and divide it by the mean return, then multiply by 100 to express it as a percentage. This metric is commonly used to compare the volatility of different cryptocurrencies or assess the overall market volatility. A higher coefficient of variation indicates higher volatility, while a lower coefficient of variation suggests more stable returns. It's important to note that the coefficient of variation should be used in conjunction with other metrics and analysis to make informed investment decisions in the cryptocurrency market.
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