Adolescent cannabis use and later development of schizophrenia: An updated systematic review of six longitudinal studies finds "Both high- and low-frequency marijuana usage were associated with a significantly increased risk of schizophrenia." onlinelibrary.wiley.com/d…
πŸ‘︎ 14k
πŸ’¬︎
πŸ‘€︎ u/Litke-Deep
πŸ“…︎ Jan 12 2022
🚨︎ report
Myocarditis and Pericarditis following COVID-19 Vaccination: Rapid Systematic Review of Incidence, Risk Factors, and Clinical Course medrxiv.org/content/10.11…
πŸ‘︎ 331
πŸ’¬︎
πŸ‘€︎ u/icloudbug
πŸ“…︎ Nov 21 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis mdpi.com/2072-6643/13/10/…
πŸ‘︎ 298
πŸ’¬︎
πŸ‘€︎ u/rugbyvolcano
πŸ“…︎ Nov 19 2021
🚨︎ report
Idiosyncratic risk? Nah, more like systematic risk once investors realize direct registration is in their best interest.
πŸ‘︎ 218
πŸ’¬︎
πŸ‘€︎ u/jmarie777
πŸ“…︎ Dec 22 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis mdpi.com/2072-6643/13/10/…
πŸ‘︎ 132
πŸ’¬︎
πŸ‘€︎ u/rugbyvolcano
πŸ“…︎ Nov 18 2021
🚨︎ report
Adolescent cannabis use and later development of schizophrenia: An updated systematic review of six longitudinal studies finds "Both high- and low-frequency marijuana usage were associated with a significantly increased risk of schizophrenia." onlinelibrary.wiley.com/d…
πŸ‘︎ 5
πŸ’¬︎
πŸ‘€︎ u/Budget-Song2618
πŸ“…︎ Jan 13 2022
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis pubmed.ncbi.nlm.nih.gov/3…
πŸ‘︎ 451
πŸ’¬︎
πŸ‘€︎ u/PapayaSF
πŸ“…︎ Nov 01 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis mdpi.com/2072-6643/13/10/…
πŸ‘︎ 117
πŸ’¬︎
πŸ‘€︎ u/TribeWars
πŸ“…︎ Nov 18 2021
🚨︎ report
A systematic review of suicidal behaviour in men: A narrative synthesis of risk factors sciencedirect.com/science…
πŸ‘︎ 6
πŸ’¬︎
πŸ‘€︎ u/UnHope20
πŸ“…︎ Jan 29 2022
🚨︎ report
COVID-19 mortality risk correlates inversely with vitamin D3 status, and a mortality rate close to zero could theoretically be achieved at 50 ng/ml 25(OH)D3: Results of a systematic review and meta-analysis medrxiv.org/content/10.11…
πŸ‘︎ 556
πŸ’¬︎
πŸ‘€︎ u/icloudbug
πŸ“…︎ Sep 26 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8541492/

an older Covid19 Vitamin D3 study, that has now graduated from pre-print to peer review.

" This study illustrates that, at a time when vaccination was not yet available, patients with sufficiently high D3 serum levels preceding the infection were highly unlikely to suffer a fatal outcome. The partial risk at this D3 level seems to vanish under the normal statistical mortality risk for a given age and in light of given comorbidities. "

πŸ‘︎ 57
πŸ’¬︎
πŸ‘€︎ u/AuLex456
πŸ“…︎ Nov 02 2021
🚨︎ report
Systematic risk
πŸ‘︎ 72
πŸ’¬︎
πŸ‘€︎ u/Enk2020
πŸ“…︎ Dec 30 2021
🚨︎ report
DeFi 101: What are DeFi Systematic Risks ?

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a cer

... keep reading on reddit ➑

πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 12 2021
🚨︎ report
The risk of being culpable for or involved in a road crash after using cannabis: A systematic review and meta-analyses

https://preview.redd.it/5nkp7uird5681.png?width=1006&format=png&auto=webp&s=691ebab141a61a3e6318bcc422f5bec99d877edd

https://journals.sagepub.com/doi/full/10.1177/20503245211055381

πŸ‘︎ 11
πŸ’¬︎
πŸ‘€︎ u/dampsparks
πŸ“…︎ Dec 17 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis

Nutrients. 2021 Oct; 13

"This study illustrates that, at a time when vaccination was not yet available, patients with sufficiently high D3 serum levels preceding the infection were highly unlikely to suffer a fatal outcome. The partial risk at this D3 level seems to vanish under the normal statistical mortality risk for a given age and in light of given comorbidities. This correlation should have been good news when vaccination was not available but instead was widely ignored. Nonetheless, this result may offer hope for combating future variants of the rapidly changing virus as well as the dreaded breakthrough infections, in which severe outcomes have been seen in 10.5% of the vaccinated versus 26.5% of the unvaccinated group, with breakthrough even being fatal in 2% of cases."

BTW, you want your Vit. D level to be 50-60 ng/mL range and most Whites are a bit less than half that and most Black/Brown people even lower.

πŸ‘︎ 52
πŸ’¬︎
πŸ‘€︎ u/ThisAd7328
πŸ“…︎ Nov 20 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis mdpi.com/2072-6643/13/10/…
πŸ‘︎ 28
πŸ’¬︎
πŸ‘€︎ u/peetss
πŸ“…︎ Nov 17 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3: Results of a Systematic Review and Meta-Analysis pubmed.ncbi.nlm.nih.gov/3…
πŸ‘︎ 111
πŸ’¬︎
πŸ‘€︎ u/D-R-AZ
πŸ“…︎ Nov 02 2021
🚨︎ report
I am sure evergrande is Not a systematic risk. πŸ˜‰πŸ˜‰
πŸ‘︎ 316
πŸ’¬︎
πŸ‘€︎ u/CallMeMo2
πŸ“…︎ Oct 15 2021
🚨︎ report
The USA military's large size is itself a systematic risk point, sucking up too much funding that should go elsewhere to create a stronger country (military is important but not everything) & spawning trained extremists. Wind-down isn't happening. apnews.com/article/pentag…
πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/HonkyStonkHero
πŸ“…︎ Dec 21 2021
🚨︎ report
A systematic review and meta analysis show PTSD increases risk of myocardial infarction, hospitalizations, and cardiac mortality. The increased risk was 49% before adjustment for depression (32% after adjustment). sciencedirect.com/science…
πŸ‘︎ 213
πŸ’¬︎
πŸ‘€︎ u/Imveryentitled
πŸ“…︎ Oct 27 2021
🚨︎ report
COVID-19 Mortality Risk Correlates Inversely with Vitamin D3 Status, and a Mortality Rate Close to Zero Could Theoretically Be Achieved at 50 ng/mL 25(OH)D3 : Results of a Systematic Review and Meta-Analysis mdpi.com/2072-6643/13/10/…
πŸ‘︎ 21
πŸ’¬︎
πŸ‘€︎ u/AndrewHeard
πŸ“…︎ Nov 18 2021
🚨︎ report
Head Games: A Systematic Review and Meta-analysis Examining Concussion and Head Impact Incidence Rates, Modifiable Risk Factors, and Prevention Strategies in Youth Tackle Football - Sports Medicine readcube.com/articles/10.…
πŸ‘︎ 10
πŸ’¬︎
πŸ‘€︎ u/WellEndowedHorse
πŸ“…︎ Dec 14 2021
🚨︎ report
A systematic review published in the Cochrane Library concluded that current evidence does not support using the antibiotic azithromycin for treatment of COVID‐19 outside of well‐designed randomized trials. The review is certain that risk of death of hospitalized COVID-19 patients is not reduced. cochranelibrary.com/cdsr/…
πŸ‘︎ 55
πŸ’¬︎
πŸ‘€︎ u/shiruken
πŸ“…︎ Oct 28 2021
🚨︎ report
Ultra-Processed Food Consumption and Adult Mortality Risk: A Systematic Review and Dose–Response Meta-Analysis of 207,291 Participants mdpi.com/2072-6643/14/1/1…
πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/HearTomorrow
πŸ“…︎ Jan 06 2022
🚨︎ report
COVID-19 mortality risk correlates inversely with vitamin D3 status, and a mortality rate close to zero could theoretically be achieved at 50 ng/ml 25(OH)D3: Results of a systematic review and meta-analysis medrxiv.org/content/10.11…
πŸ‘︎ 42
πŸ’¬︎
πŸ‘€︎ u/ORyansBelt408
πŸ“…︎ Oct 01 2021
🚨︎ report
Systematic risk to staus quo of hedge funds leaching the economy

Late night thought that I wanted to share. Since the narrative is building that hodling stocks poses a systematic risk, let's define that risk in more proper way. Hodling causes the Systematic risk to status quo of hedge funds leaching the economy. They won't anymore be able to do that and thus start crying game by using their media puppets and paid politicians.

πŸ‘︎ 56
πŸ’¬︎
πŸ‘€︎ u/moonaim
πŸ“…︎ Nov 10 2021
🚨︎ report
DeFi Systematic Risks

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a certain

... keep reading on reddit ➑

πŸ‘︎ 3
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 18 2021
🚨︎ report
DeFi 101: What are DeFi Systematic Risks ?

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a cer

... keep reading on reddit ➑

πŸ‘︎ 6
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 12 2021
🚨︎ report
DeFi 101: What are DeFi Systematic Risks ?

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a cer

... keep reading on reddit ➑

πŸ‘︎ 3
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 12 2021
🚨︎ report
DeFi Systematic Risks

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a certain

... keep reading on reddit ➑

πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 18 2021
🚨︎ report
DeFi Systematic Risks

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a certain

... keep reading on reddit ➑

πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 18 2021
🚨︎ report
DeFi Systematic Risks

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a certain

... keep reading on reddit ➑

πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 18 2021
🚨︎ report
DeFi Systematic Risks

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a certain

... keep reading on reddit ➑

πŸ‘︎ 2
πŸ’¬︎
πŸ‘€︎ u/economicsdesign
πŸ“…︎ Dec 03 2021
🚨︎ report
DeFi 101: What are DeFi Systematic Risks ?

We provide over 100+ FREE crypto articles on our SubStack! :D (Link on our profile). This is not financial advice.

TLDR:

In conclusion, risk analysis of DeFi protocols is a very complex process as the areas of risk exposure are very different and often interfere with each other. For example, a protocol that allows more freedom in governance will attract investors who want to make the most out of being able to cast their votes on a wide variety of factors, but it will also be subject to more volatility in changes and be undesirable to another group of investors who want to hold the tokens for stability in asset value. Thus, we have to be clear of our purpose first, and then make the relevant analysis and comparison across protocols.

General Conclusion

Risk is one of the most prominent issues in traditional financial markets. In particular, risk helps investors to quantify a specific number representing an asset value, in order to assess whether that level of risk is acceptable.

In DeFi, however, risk is often undervalued as the majority of participants do not fully appreciate it. Several lending/borrowing protocols are at the forefront of this field when it comes to assessing the risk of an asset. In other protocols we rarely see full consideration of risk.

In this article, we will introduce the concept of systematic risk (generalised) from traditional markets to DeFi.

What Is Systematic Risk?

Assuming you invest in a single asset, what is the source of risk for this "portfolio"?

We can say that there are two common sources of uncertainty:

  1. Risks arise from overall economic conditions, such as business cycles, inflation, interest rates and exchange rates. These economic factors are difficult to predict with certainty and all affect the return on assets.
  2. Risk comes from the asset itself (specificity). For example, is the government controlling the asset or is their direct demand for it, etc. These factors affect one asset but do not affect other assets.

Now we look at the "portfolio" of even more assets (a diversification strategy), asking the same question, what about portfolio risk?

Diversifying multiple asset classes spreads the risk of the entire portfolio. The ability to decrease the value of one asset provides the ability to increase the value of another asset. These effects will offset and stabilise the return on the entire portfolio and portfolio volatility will continue to decrease.

However, even if we hold a cer

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