portfolioafterlife
too fast for love
I rendimenti passati sono passati, perciò queste analisi retrospettive vanno prese cum grano salis.
The Case for Making Bitcoin 5 Percent of Allocators’ Portfolios
Institutional investors could invest more in cryptocurrencies if tighter regulations are enacted, according to Ned Davis Research.
www.institutionalinvestor.com
Annualized returns since July 2010 are much higher for the Bitcoin portfolio (20.73 percent versus 9.59 percent). While the standard deviation of the Bitcoin portfolio is meaningfully higher (14.08 percent versus 9.06 percent), risk-adjusted returns/Sharpe ratio ([percent return - percent risk-free rate] / percent standard deviation) is still meaningfully higher for the Bitcoin portfolio.
There is bipartisan support for crypto regulation, and we think it is a matter of time before all investable digital assets are under SEC jurisdiction, which will build crypto confidence.
The average daily price change (up or down) over the past 100 days for Bitcoin is 3.2 percent. That’s 5.5 times higher than the S&P 500 100-day average daily price move of 0.57 percent.
While we don’t believe that Bitcoin’s correlation to other assets is as low as touted, we do feel that a 5 percent allocation to a portfolio should lift risk-adjusted returns over the next ten years. In our opinion, managing volatility with diversification and buying after a significant correction are the keys to successful ownership.