The latest report has been uploaded. There are some updates an added Analytics coming soon.
There we’re many requests for some additional explanation regarding the individual altcoin reports. Below a short description
The reports retrieves historical price series to calculate Risk Metrics. For the Twitter analysis Tweets with a hashtag on the specific coin are downloaded in bulk with a Python script. The textual analysis is done with the help of the TextBlob library, which is used to analyse any individual Tweet.
• MetricsThis gives a global overview of Risk Metrics with respect to the specific coin. Is answers the questions on how volatile the specific coin is and how it correlates with Bitcoin.
○ Mkt cap – Market capitalization of specified coin in US dollars
○ Standard devation – Standard deviation of coin as proxy for risk (including decay which implies recent shocks increase risk measured exponantionally)
○ Downside deviation – Standard deviation with only returns <0%
○ BTC correlation – Coin correlation with Bitcoin
○ Max price – Highest historical price of coin
• BTC regrRegression with BTC as explainatory variable. This measures how many of the coins return is explained by Bitcoin movement
○ B0: Constant
○ S0: Standard deviation of constant
○ B1: Beta –> If Bitcoin goes up with 1, specific coin goes up with B1
○ S1: Standard error of B1. This can be used to test significance
○ R2: Which percentage of the coin return are explained by Bitcoin
• TwitterA majority of Altcoins is driven by sentiment and general popularity. This graph gives insight in to that popularity by measuring the average number of Tweets on the specified coin. Next to that it shows what percentage of those Tweets is either extremely positive or extremely negative.
○ Dark blue bar – Tweets that are extremely negative
○ Brown bar – Tweets that are extremely positive
○ Yellow bar – Neutral Tweets
○ Sum of bars – Total Tweets with specific coin mentioned for a specific date
○ Grey line – Tweets on BTC and ETH, scaled to the market cap of the specific coin. This provides a benchmark on whether the volume of Tweets for a specific coin are above or below average
○ Dark line – Price of coin, axis on right hand side (in this case NEO)
• Twitter mentions hourly (past 5 days)
○ This shows the average hourly Tweets on a coin for the past 5 days of several similar coins. This puts in persepctive the number of Tweets (is it above or below similar coins)
○ This gives an indication of average sentiment of Tweets. This ranges from +1 (positive) to -1 (negative). It is plotted against a benchmark (average sentiment of BTC and ETH) and against its price.
A new cryptoreport is available. Check the report section or subscribe to the newsletter to receive it first.
LTC is showing some movement the last few days. Nice opportunity to run a quantitative analysis. The is some indication that Twitter volume is frontrunning price (although a bit weak). More reports will follow later this week.
Yesterday saw a major increase in #Dash Twitter volume. Sentiment is rather stable. I am not sure on what is the cause. #Dash report is updated and can be found below.