So, no matter how many positions you have, you cannot eliminate market risk. On the other hand, systematic risk is the risk that Harmony's price will be affected by overall cryptocurrency market movements and cannot be diversified away. This type of risk can be diversified away by owning several different digital assets on different exchanges whose coin prices have shown a small correlation to each other. Unsystematic risk is the risk that events specific to Harmony project will adversely affect the coin's price. Most traded cryptocurrencies are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or coin-specific or project-specific) risk. This type of volatility can be derived from derivative instruments written on Harmony's to be redeemed at a future date. This means that the crypto will return to its initially predicted market price. Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for Harmony's current market price. However, it cannot conclusively determine the future direction of the crypto coin. It's commonly used to predict Harmony's future behavior based on its past. There are two main types of Harmony's volatility: Historical VolatilityThis type of crypto volatility measures Harmony's fluctuations based on previous trends. Investing in highly volatile security can either be highly successful, or you may experience significant failure. A highly volatile crypto is riskier, but the risk cuts both ways. A crypto coin with relatively stable price changes has low volatility. A crypto that has erratic price changes quickly hits new highs, and lows are considered highly volatile. Investors will then calculate the volatility of Harmony's crypto coin to predict their future moves. These fluctuations usually indicate the level of risk that's associated with Harmony's price changes. Volatility refers to the frequency at which Harmony crypto price increases or decreases within a specified period. This usually forces investors to rebalance their portfolios by buying different cryptos as prices fall or investing in DeFi projects. The higher level of volatility that comes with bear markets can directly impact Harmony's price while adding stress to investors as they watch their shares' value plummet. Properly using volatility indicators enable traders to measure Harmony's crypto coin risk against market volatility during both bullish and bearish trends. Understanding different market volatility trends often help investors time the market. The only way to increase coin holder value is through legitimate performance analysis backed up by solid fundamentals of the project the coin represents. The price of a promoted high-volatility instrument will almost always revert. However, remember that cryptos that have been the subject of artificial hype usually cannot maintain its increased price for more than a few days. You can indeed make money on Harmony if you perfectly time your entry and exit. We also encourage crypto traders to check the biographies and work history of the founders of the accociated project, carefully read the white papers and consensus ducoments before investing in high-volatility coins. We encourage cryptocurrency investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. Please make sure you fully understand upside potential and downside risks of investing in Harmony crypto or similar risky assets. Although Harmony may be, in fact, a solid short-term or long term investment, many penny crypto coins are speculative digital assets that are often subject to artificial coin promotions and campaigns of hype which may lead to misinformation and misrepresentation. However, we advise cryptocurrency investors to further study Harmony technical indicators to make sure all market info is available and is reliable. Harmony exhibits very low volatility with skewness of -0.47 and kurtosis of 0.68.
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