 COMPARISON OF SELECTED PORTFOLIO STRATEGIES BASED ON THE EXAMPLE OF CRYPTOCURRENCY PORTFOLIOSKinga Kądziołka Economic and Regional Studies (Studia Ekonomiczne i Regionalne), 2021, vol. 14, issue 01 Abstract: Subject and purpose of work: The purpose of this work was to compare selected portfolio strategies in terms of return rates in order to answer the question whether the method of determining the weights of the portfolio and reduction of the number of portfolio elements characterized by strong positive correlation of rates of return have an impact on its profitability. Materials and methods: The analysis used publicly available data, selected portfolio methods and hierarchical clustering. Both short- and long-term investment strategies were examined. Results: None of analyzed strategies allows to achieve higher rates of return in any given (arbitrarily selected) period than other analyzed strategies. Portfolios with a reduced number of elements in most cases did make it possible to achieve a higher rate of return than the benchmark portfolios consisting of 15 cyptocurrencies. Conclusions: While making investment decisions, one should bear in mind that the realized rate of return may significantly differ from the expected rate of return of the portfolio, which is only a forecast. Keywords: Financial Economics; Research Methods/Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:plecrs:310401 Access Statistics for this article More articles in Economic and Regional Studies (Studia Ekonomiczne i Regionalne) from John Paul II University of Applied Sciences in Biala Podlaska |
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