Related Experiment Video
Updated: Dec 10, 2025
05:30
Large Scale Energy Efficient Sensor Network Routing Using a Quantum Processor Unit
Published on: September 8, 2023
971
Portfolio optimization in the era of digital financialization using cryptocurrencies
Yechi Ma1, Ferhana Ahmad2, Miao Liu3
1School of Economics and Management, Northeast Normal University, No. 2555 Jingyue Street, Changchun 130117, Jilin, China.
Technological Forecasting and Social Change
|September 1, 2020
Summary
Diversifying traditional investment portfolios with cryptocurrencies like Ethereum can enhance returns and reduce risk. This study shows adding digital assets improves diversification, outperforming traditional assets.
Area of Science:
- Finance
- Economics
- Technology
Background:
- The Fourth Industrial Revolution introduces innovative financial technologies challenging traditional economies.
- Investors are exploring broader investment spectrums and diversifying portfolios with digital financial innovations.
- Developing advanced strategies aligned with financial and technological advancements is crucial for long-term sustainability.
Purpose of the Study:
- To investigate the impact of diversifying traditional asset portfolios with cryptocurrencies.
- To analyze the effect of adding five cryptocurrencies on four traditional asset portfolios from November 2015 to November 2019.
Main Methods:
- Portfolio diversification analysis.
- Inclusion of five cryptocurrencies (including Bitcoin and Ethereum) in traditional asset portfolios.
- Comparative analysis of traditional portfolios versus diversified portfolios.
Main Results:
- Diversification increased returns in most cases and reduced portfolio volatility across all analyzed portfolios.
- Diversified portfolios provided higher returns for the same level of risk compared to traditional portfolios.
- Ethereum demonstrated a better diversification opportunity compared to Bitcoin.
Conclusions:
- Adding multiple cryptocurrencies enhances portfolio diversification benefits.
- Diversification with cryptocurrencies offers improved risk-adjusted returns.
- Allowing short sales may further enhance diversification results.
Related Concept Videos
01:26Equity Theory
158
Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...
158
00:48Optimal Foraging
13.1K
How animals obtain and eat their food is called foraging behavior. Foraging can include searching for plants and hunting for prey and depends on the species and environment.
13.1K
01:29Issues And Trends In Healthcare Delivery System
6.0K
The issues and trends in healthcare delivery are constantly changing. The COVID-19 pandemic is one recent issue that wreaked havoc on healthcare systems, causing a shortage of healthcare workers, high demand for medicines and supplies, and increased medical expenditure due to a lack of insurance. Other issues include rising healthcare costs and care fragmentation.
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
6.0K
01:20Actuarial Approach
219
The actuarial approach, a statistical method originally developed for life insurance risk assessment, is widely used to calculate survival rates in clinical and population studies. This method accounts for participants lost to follow-up or those who die from causes unrelated to the study, ensuring a more accurate representation of survival probabilities.
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
219
01:12Quantitative Analysis
1.1K
Quantitative analysis is a technique for measuring the amount of specific constituents in a sample. When the sample's composition is unknown, qualitative analysis is performed first to identify its components, which ensures that the correct substances are measured during the quantitative phase.
In quantitative analysis, two key measurements are made: the sample quantity and a property proportional to the amount of the analyte (the substance being analyzed). This forms the basis of the...
In quantitative analysis, two key measurements are made: the sample quantity and a property proportional to the amount of the analyte (the substance being analyzed). This forms the basis of the...
1.1K
01:09Decision Making: P-value Method
6.6K
The process of hypothesis testing based on the P-value method includes calculating the P- value using the sample data and interpreting it.
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim is also stated. These statements can act as null and alternative hypotheses: a null hypothesis would be a neutral statement while the alternative hypothesis can...
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim is also stated. These statements can act as null and alternative hypotheses: a null hypothesis would be a neutral statement while the alternative hypothesis can...
6.6K