Research Report:Crypto improves a portfolio’s performance

[Iconic Lab]

The Impact of Crypto Currencies on the Sharpe Ratio of Traditional Investment Models

Iconic Funds commissioned an empirical study analyzing the impact a minor crypto-asset allocation would have had on the risk-adjusted ROI of various portfolio types. The study concluded that all portfolio types benefited greatly, resulting in the portfolio’s Sharpe Ratio roughly doubling for all portfolio strategies with a mere 1%, rebalanced monthly, allocation to crypto assets.

Read The Research Report:https://iconicholding.com/the-impact-of-crypto-currencies-on-the-sharpe-ratio-of-traditional-investment-models/

[bitmover]

I believe slightly different: Bitcoin improves portfolio performance.

Specially in this year, with all this recession and economical crisis... In developing countries most of the fiat currencies lost value against USD, which indirectly made Bitcoin prices  hit new highs.

[CucakRowo]

-snip-

Have you read the report? Your "slightly difference" has been stated explicitly in that report. Let me copy-paste it for you :

"In  conclusion,  the  addition  of  crypto  currencies   generally   increased   the   Sharpe ratio of a given portfolio, con-sidering  that  in  17  out  of  18  cases  a  relevant  increase  in  the  Sharpe  ratio  was  observed.  In  relative  terms,  the  Sharpe  ratio  increased  the  most  for  all  portfolios  when  moving  from  a  0%  crypto  allocation  to  a  1%  crypto  allocation. This evidences that a com-paratively   small   holding   of   crypto   currencies can significantly improve a portfolio’s performance"

Source : OP report Page 12

To OP. Yeap i agree with your conclusion. But i want to ask, Cryptocurrency that you guys use in your report are : Bitcoin, Ethereum, XRP, Litecoin, Tether,  Bitcoin  Cash,  EOS,  Binance  Coin, Bitcoin SV and Tezos. And yes, will bring profit when it's in uptrend (in 2020, start from March - June 1). What about in downtrend? Perhaps starting on mid july 2020. do you have any research during the downtrend phase?