Do Cryptocurrencies Offer Diversification Benefits for Equity Portfolios?

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F21%3A63532098" target="_blank" >RIV/70883521:28120/21:63532098 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sciendo.com/article/10.2478/sbe-2021-0021" target="_blank" >https://www.sciendo.com/article/10.2478/sbe-2021-0021</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Do Cryptocurrencies Offer Diversification Benefits for Equity Portfolios?

Popis výsledku v původním jazyce

Cryptocurrencies are becoming an exciting topic for legislative bodies, practitioners and scholars with diverse academic backgrounds. Cryptocurrencies operate as financial securities and medium of exchange, this dual function provide a novel outlook for the studies on the field of portfolio management. The work identifies diversification benefits when cryptocurrencies are combined with the portfolios of equity stocks. Three different independent experiments were conducted to observe portfolio benefits generated from cryptocurrencies, in terms of risk and returns. Results from the two experiments show that cryptocurrencies employ higher portfolio risk and generate higher returns when they are involved with equity stocks portfolios. In contrast, outcomes of the first experiment indicate that cryptocurrencies reduce the risk level of the equity portfolios while increase weighted average returns. Hedge funds and individual investors gain new insights on the risk-reward outcomes employed from cryptocurrencies when combined with equity stocks. Results indicate that cryptocurrencies must be seriously considered by the portfolio managers as an essential aspect of the portfolio diversification benefits. Future studies might raise the samples of selected portfolios with stocks from different stock indexes, to identify the problem from a broader perspective. However, providing the equity portfolios with additional stocks lower portfolio risk which is in line with the theoretical paradigms

Název v anglickém jazyce

Do Cryptocurrencies Offer Diversification Benefits for Equity Portfolios?

Popis výsledku anglicky

Cryptocurrencies are becoming an exciting topic for legislative bodies, practitioners and scholars with diverse academic backgrounds. Cryptocurrencies operate as financial securities and medium of exchange, this dual function provide a novel outlook for the studies on the field of portfolio management. The work identifies diversification benefits when cryptocurrencies are combined with the portfolios of equity stocks. Three different independent experiments were conducted to observe portfolio benefits generated from cryptocurrencies, in terms of risk and returns. Results from the two experiments show that cryptocurrencies employ higher portfolio risk and generate higher returns when they are involved with equity stocks portfolios. In contrast, outcomes of the first experiment indicate that cryptocurrencies reduce the risk level of the equity portfolios while increase weighted average returns. Hedge funds and individual investors gain new insights on the risk-reward outcomes employed from cryptocurrencies when combined with equity stocks. Results indicate that cryptocurrencies must be seriously considered by the portfolio managers as an essential aspect of the portfolio diversification benefits. Future studies might raise the samples of selected portfolios with stocks from different stock indexes, to identify the problem from a broader perspective. However, providing the equity portfolios with additional stocks lower portfolio risk which is in line with the theoretical paradigms

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

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OECD FORD obor

50201 - Economic Theory

Projekt

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Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2021

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Studies in Business and Economics

ISSN

1842-4120

e-ISSN

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Svazek periodika

16

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

13

Strana od-do

5-18

Kód UT WoS článku

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EID výsledku v databázi Scopus

2-s2.0-85117691367