The closer quants look, the less diversifying crypto appears

Analysis seems to confirm that the asset class is not an effective diversification play

bitcoin hedging

This year’s cryptocurrency collapse, which occurred as selloffs were taking place in stocks and bonds, has cast doubt on the asset class’s credentials as a source of diversification.

Newly published research by a range of market observers appears to confirm that crypto reacts in the same way as other investments to factors such as macroeconomic shocks, political risk and volatility in mainstream markets.

“Most investors think of crypto assets as a good hedge because they assume that the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Sign up here

 

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: