The correlation Bitcoins to the considered Assets in the traditional markets increased. Associated, unfortunately, with a decrease in the Performance, so Bitcoin in terms of Performance has only just ahead by a nose.
Dr. Philipp Giese
17. November 2019 BTC $ 7,189.68 0.12% part Facebook Twitter LinkedIn xing mail
For almost a year, we keep track of how Bitcoin fails in comparison to traditional markets. This is not a trivial comparison of the Performance. Institutional investors are interested in Bitcoins claim to be a non-correlated, stable Asset, extremely. In a guest contribution on the €uro Fund research dedicated to BTC-ECHO the question of whether Bitcoin and the strongly correlated crypto market would be a good addition to classic portfolio. This question is the institutional investors in the crypto-market is interested in, less of a hope of a new Bull Run like the end of 2017. In order to clarify the Suitability of classical Portfolios can be considered an Investor in various sizes:
the correlation between the Bitcoin price and the traditional markets of the volatility the Performance the Bitcoin-course
We pay attention in this series of articles, therefore, on these three sizes. You will be charged for each day on the Basis of the last 30 days. As a comparison, assets in traditional markets, we consider indices S&P 500, Nikkei and Dax, as well as Oil and Gold.
Bitcoin and Gold against the Rest of the market
How in the last week of the correlation from the Bitcoin exchange rate to Gold is relatively high. To Oil the other considered classic Assets have a positive correlation to Bitcoin:
The week was largely marked by an increase in the correlations. Have changed the pairings from the Bitcoin exchange rate to Gold and Oil barely increased the correlations to the indices Nikkei, DAX and S&P 500 strong. The correlation to the S&P 500 is, therefore, now over 20 percent. The correlations between the Bitcoin price and the DAX and the Nikkei could rise in the course of this development in the positive range again:
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The absolute mean correlation with the other markets is 15 percent. Unlike in the last few months, Bitcoin has the lowest absolute correlation to the comparison markets. This place Oil, with 12 percent. Gold is correlated to 18 percent, with the rest of the markets, while the three indices, the S&P 500, DAX and Nikkei have correlations of over 20 percent.
taking into Account any offsetting effects, the Situation for Bitcoin is even worse: 9 percent of the Bitcoin is linked to the rest of the markets more than Oil (6 percent), Nikkei Index (5 percent) and Gold (0 percent). Only the S&P 500 and the DAX are coupled with a 20-or 26 percent, more in line with the other comparison markets.
And more stable volatility of 4 per cent,
New you can’t tell about the volatility: it is still at four percent. Also, regarding the comparison of assets, there is no news. The volatility of Oil is how in the last few weeks about one percent and the rest of the Assets Lose less:
the price of Bitcoin back to its Pole Position?
won some, lose some? He could go in the last two weeks as the best-performing Asset out of the market comparison, you must Bitcoin now fighting for this Pole Position. In the last week, we mentioned that all the Assets could show up on Gold rising Performances. In addition to this Trend is the Performance of Bitcoins on 8 is. November fallen sharply. Still can keep on the traditional markets, the distance to Oil, however, is extremely scarce:
This is reflected in the Return of Investment: In the last week, we were able to conclude that both the long – and short-term time horizon to be worth it. The picture changed slightly: more Than a month is considered the Gold would be a better one-time Investment than Bitcoin has been. Who would have invested in the last quarter, in Bitcoin, of course, would be clearly negative. For long-term investors, the Investment would have been worth it in Bitcoin continues:
Just this longer horizon should be for institutional investors continue to be interesting. In the face of next year’s upcoming Halvings few not hope for a dramatic price increase. Overall, therefore, Bitcoin should be, even if the Performance is weak currently, an interesting addition to classic portfolio.
data on 15. November cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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