Evai Ratings
Methodology
A User-Friendly Guide to Evai Crypto Rating
Welcome to our guide on how the Evai Crypto Rating system, works. This guide aims to give you a clear understanding of our methodology and how to interpret the ratings to make informed investment decisions in the crypto market as well as to get the maximum benefit from using Evai tools.
The Goal
The main aim of Evai Ratings is to create a crypto assets ranking system and a set of tools that help investors form their optimal crypto portfolios.
Understanding the Basics
What is Evai Crypto Rating?
Evai Crypto Rating is more than just a rating system. It’s a comprehensive tool that considers the unique aspects of the crypto market, such as high volatility and correlation among assets. By using advanced AI models, we provide ratings that help both novice and experienced investors make informed decisions. Evai Crypto Rating is a system designed to assign ranks to different cryptocurrencies from the best (AAA) to the lowest (D) that indicate how good is each given asset for inclusion into the optimal investment portfolio.
Automatic Rating Calculation
The ratings are calculated automatically, removing any human bias and giving holistic, real-time, whole-market visibility to the users.
Update Frequency
New ratings for all assets are recomputed every 1 hour.
How We
Calculate Ratings
The methodology involves a portfolio management approach. It doesn't just look at market cap but also considers how likely each cryptocurrency is to be in an optimal portfolio.
This is done by looking at 'Nested Efficient Frontiers' - a way of ranking cryptocurrencies by uncovering layers of potential investment quality. A combination of factors is taken into consideration including market capitalization, liquidity, volatility, expected returns, and others. We use innovative Artificial Intelligence to analyze these factors and determine the optimal portfolio, or the 'Efficient Frontier', for different levels of risk and return.
The Rating Process
The rankings letter codes are
defined as the following
| ID | Letter Code | Description |
|---|---|---|
| 0 | AAA | Top-rated assets, best performers |
| 1 | AA | Excellent assets with slightly higher risk |
| 2 | A | Good assets with potential for growth |
| 3 | BBB | Moderate assets with balanced risk-reward |
| 4 | BB | Below-average assets with some potential |
| 5 | B | Lower-quality assets with higher risk |
| 6 | CCC | Volatile assets with significant risk |
| 7 | CC | Assets with increased risks and volatility |
| 8 | C | High-risk assets with lower efficiency |
| 9 | D | Lowest ranked, not recommended for investment |
| 10 | U | Unrated, usually new or lacking data |
Conclusion
Evai Rating Methodology evaluates crypto assets by automatically calculating their ratings based on measurable factors. This system aims to assist investors in selecting crypto assets for their portfolios by considering cryptomarket-specific factors like market cap size, liquidity, slippage, investors' risk level, and assets' profitability. It also includes a concept called "nested efficient frontiers" to rank the whole universe of assets (not only the ones, that reside on the efficient frontier).
This approach offers a dynamic, data-driven method for investors to understand and compare crypto assets, catering to various investment strategies and risk tolerances.
Evai Rating is a sophisticated yet automated tool to help investors navigate the complex world of cryptocurrency investing, by providing a clear and comprehensive ranking system.