Stylized Facts for Cryptocurrencies: A Sectoral Analysis
This paper delves into the stylized facts of the cryptocurrency market, providing a sectoral analysis across the top 10 digital assets. Using advanced statistical tools, we uncover behavioral patterns and risk factors unique to the crypto sector. Whether you are a trader or investor, understanding these factors will sharpen your market strategies.
Stylized Facts for Cryptocurrencies: A Sectoral Analysis
Introduction
This paper delves into the stylized facts of the cryptocurrency market, providing a sectoral analysis across the top 10 digital assets. Using advanced statistical tools, we uncover behavioral patterns and risk factors unique to the crypto sector. Whether you are a trader or investor, understanding these factors will sharpen your market strategies.
Abstract: In this paper, we make a thorough study of stylized facts across the crypto market. The paper begins with a statistical analysis of a top 10 token, market cap weighted index. Next, we use the DACS taxonomy to construct sectoral indices and compare statistical behavior across the 5 sectoral indices. A range of techniques and metrics are utilized such as distribution fitting, Q-Q plots for distribution comparisons, skewness, kurtosis, GARCH fitting and autocorrelation plots to confirm or deny the common stylized facts.
Download the full paper to see how traditional finance stylized facts apply to a broad range of cryptocurrencies and the benefits of sectoral diversification.
*Note: Cloudwall and the technology behind its Serenity System were acquired by Talos in April 2024. Learn more.
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