According to the latest report from CoinShares, traditional 60/40 investment portfolios (60% stocks and 40% bonds) are no longer suitable for the current market environment.
The research indicates that incorporating Bitcoin into the portfolio can significantly improve risk-adjusted returns. By allocating 4% of Bitcoin to the 60/40 portfolio, the Sharpe ratio (a measure of investment return relative to its risk) increased from 0.48 to 1.05 and reduced the correlation of the portfolio.
In addition, Bitcoin has also shown significant diversification and return enhancement effects in classic portfolios such as the All Weather Portfolio and the Yale Endowment.
The analysis suggests that the optimal allocation of Bitcoin should be between 4-10%, which can significantly improve portfolio performance while maintaining reasonable risk.
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Bitcoin
Source link:
https://coinshares.com/research/the-bitcoin-advantage-enhancing-real-world-por…
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Original link: https://www.bitpush.news/articles/6891531