Why Bitcoin Isn’t a Good Market Hedge

Institutional Investor2021-09-28

The cryptocurrency is more volatile than equities — but investors shouldn’t write it off completely, researchers say. Bitcoin is not the equities hedge that some investors want it to be, but that ...

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精彩评论

牛与熊
2021-09-28
牛与熊
Ok
Hayz
2021-09-28
Hayz
Young has 10% exposure, old has 1% exposure...some exposure is good diversification.
- 牛与熊:
  Ok
seanisright
2021-09-28
seanisright
so this article is just a pretty big no
Vitalium
2021-09-28
Vitalium
No to crypto
- seanisright:
  right
RajeshY
2021-09-28
RajeshY
Basis
Footixx
2021-09-28
Footixx
🧐

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The latest piece, entitledIs Bitcoin A Hedge?waspublished on September 18by a trio from the University of Western Australia: Dirk Baur, Lai Hoang, and Md Zakir Hossain.\n“The question [of] how excess volatility of Bitcoin affects its hedge and diversifier properties is generally not analyzed,” they wrote in the paper’s introduction.\nSo they attempted to analyze which weight of Bitcoin in a portfolio alongside the S&P 500 index could reduce portfolio risk — in other words, act as a hedge. Their work suggests that Bitcoin is a “rather poor risk diversifier and hedge for the S&P 500,” the paper said.\nThe authors created model portfolios using monthly and daily return data from 2011 through 2021 for both the S&P 500 and Bitcoin. 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According toresearch publishedin August, including certain cryptocurrencies in a portfolio can offer diversification benefits to investors,Institutional Investorpreviously reported.\nIn other words, while Bitcoin isn’t a hedge, it still can be a tool for investors — as long as they know how to use 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has 10% exposure, old has 1% exposure...some exposure is good diversification.","listText":"Young has 10% exposure, old has 1% exposure...some exposure is good diversification.","text":"Young has 10% exposure, old has 1% exposure...some exposure is good diversification.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/866758218","repostId":1141752032,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6023490,"gmtCreate":1632810343742,"gmtModify":1632810343742,"authorId":3555057177498794,"author":{"id":3555057177498794,"idStr":"3555057177498794","authorId":3555057177498794,"name":"牛与熊","avatar":"https://static.tigerbbs.com/b52cbfe59968ea98a47a1f372d2df449","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":866758218,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"CN"},{"id":866750789,"gmtCreate":1632809205441,"gmtModify":1632809205578,"author":{"id":"3585475029155588","authorId":"3585475029155588","name":"seanisright","avatar":"https://static.tigerbbs.com/dda21240ac9bd6280ce1f04de5c3a999","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3585475029155588","authorIdStr":"3585475029155588"},"htmlText":"so this article is just a pretty big no","listText":"so this article is just a pretty big no","text":"so this article is just a pretty big no","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/866750789","repostId":1141752032,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":866750479,"gmtCreate":1632809192692,"gmtModify":1632819598195,"author":{"id":"4087878554739440","authorId":"4087878554739440","name":"Vitalium","avatar":"https://static.tigerbbs.com/fe2b8117b10c17c5aa2f198c26ef0f74","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4087878554739440","authorIdStr":"4087878554739440"},"htmlText":"No to crypto","listText":"No to crypto","text":"No to 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