While the broader crypto market faces downward pressure, Zcash (ZEC) has surged over 13% in 24 hours to around $618. This counter-trend move is accompanied by an all-time high in shielded supply: 5.1 million ZEC. The on-chain data points to growing adoption of private transactions on the network.
For algorithmic traders and portfolio managers, such divergence between an asset and the overall market is a potential signal of relative strength. But how do you objectively measure whether this signal is actionable? That’s where calibration comes in.
At Strategy Arena, we use portfolio composition metrics based on Monte Carlo simulations. Our Portfolio MC composition indicator currently shows a Sharpe ratio of 2.07 with cell composition tracking. This means that, in our backtests, allocations adjusted for on-chain signals like Zcash’s shielded supply have historically delivered a high risk-adjusted return.
Important: this is not a buy recommendation. Past Sharpe ratios do not guarantee future performance. Please review our methodology to understand how these metrics are built.
Original source: BeInCrypto – Zcash Shielded Supply Hits Record 5.1 Million as the Token Bucks a Weak Market
Strategy Arena metric: Portfolio MC composition – Sharpe 2.07
Caveat
This article is generated for educational and analytical purposes only. It does not constitute financial advice. Past performance in backtests or paper trading is not proof of future profitability. Cryptocurrency trading carries high risk. Always conduct your own research before making investment decisions.