Development Complete on Plethori’s ETF Analysis Tool

Plethori has finalized development of their ETF Analysis Tool, a proprietary piece of software that enables fund managers to design and backtest hypothetical Crypto ETFs. Pulling historical data from a Coingecko API, the Plethori Analysis Tool (PAT) allows fund managers to select any assets listed on Coingecko, assign weightings, select the backtest period, choose whether or not to rebalance, and if so, with what frequency.

The PAT then backtests the data based on the parameters and provides an output sheet with 2 graphs and 2 tables displaying the ETFs historical data. Bitcoin’s data over the same period is used as a comparison benchmark.

Graphs
1. Tracked return data over backtested period.
2. Volatility.

Tables
1. Cumulative return, Max drawdown, 3, 6, 12 month + max return and volatility.
2. Correlation coefficients between underlying assets.

Cumulative Return
The cumulative return displays the aggregate return on investment over the whole backtested period. This figure would be increased by the addition of dividends, derived from yield generation earned through the lending of an ETF’s underlying assets.

Maximum drawdown
Maximum Drawdown (MDD) is a measure of the relative riskiness of an investment. It is measured as the maximum loss from peak to trough of a portfolio. MDD provides important data in assessing the downside risk of Plethori’s ETFs.

Correlation Coefficient
The correlation coefficient is displayed in Table 2 of PAT’s output sheet. It is important in determining the correlation between an ETF’s underlying assets, as assets with a high correlation reduce a portfolio’s diversification and increase riskiness.

The completion of PAT’s development is a significant milestone in the journey to fruition for Plethori’s primary products — their megatrend ETF range.

Composition and backtesting has now commenced, and Plethori’s community can expect the release of finalized designs later this month, with whitelists for the first generation of megatrend ETFs becoming available for sophisticated investors. To sign up for the whitelists, users must demonstrate a minimum balance of 20,000 PLE (value at time of writing = $619 USD).

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About Plethori
Plethori is a Crypto ETF creation and trading protocol that allows users to invest in a wide range of Crypto ETFs comprising assets from sectors driving the crypto space. Plethori’s ETFX provides the framework for users to create and manage customized ETFs, earning a percentage of the transaction fees each time their fund is traded.

Offering the world’s most popular financial product within an innovative and gamified platform, Plethori are focused on facilitating mass adoption and accelerating the decentralization of the global economy.

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