THE IMPACT OF CRYPTOCURRENCY INCLUSION ON PORTFOLIO PERFORMANCE: RISK-RETURN TRADEOFFS AND MARKET INTEGRATION

Svetoslav Borisov ()
Additional contact information
Svetoslav Borisov: University of Economics - Varna, Department of Finance

Financial Navigator Journal (selected edition), 2025, issue 1, 4-15

Abstract: The integration of cryptocurrencies into investment portfolios has attracted significant interest among scholars and practitioners, yet their capacity to improve or detract from portfolio performance remains subject to ongoing debate. This study examines the risk-return dynamics linked to incorporating cryptocurrencies into conventional investment frameworks, with a focus on diversification potential, volatility transmission mechanisms, and the interplay between cryptocurrencies and traditional markets. Although prior research has addressed these dimensions, critical gaps persist concerning the sustainability of cryptocurrency allocations over extended periods, their behaviour during periods of severe market stress, and the implications of evolving regulatory landscapes. By synthesising in-sights from contemporary empirical analyses and quantitative financial models, this paper systematically evaluates existing evidence and identifies priority areas for future scholarly inquiry. The findings aim to inform both academic discourse and practical portfolio strategy in an era of rapid financial innovation.

Keywords: cryptocurrency; portfolio performance; risk-return tradeoff; market integration; diversification (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal-fn.ue-varna.bg/index.php/fnj/article/view/2/1 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrn:cfinrd:y:2025:i:1:p:4-15

Access Statistics for this article

Financial Navigator Journal (selected edition) is currently edited by Stoyan Kirov

More articles in Financial Navigator Journal (selected edition) from University of Economics Varna Contact information at EDIRC.
Bibliographic data for series maintained by Stoyan Kirov ().