Topic: Altcoins correlation (Read 126 times)
Agree, sometimes (like in November-December 2017) it's great to be 90-95% in crypto. In other times it's good to have fiat to buy dips (or even other asset classes)
I found a pretty interesting info about alts correlation on twitter.
"Takeaways: 1. "Crypto coins are highly correlated." Kind of true, but look at the market as recently as Nov 2017.. 0 correlation! 2. Correlations are currently ridiculously high at 0.81 and have been persistently high since early Feb 2018. It seems unhealthy/unsustainable.
Strategically, in increasing/high correlation environments, I prefer having a highly concentrated portfolio.
If you're looking to diversify your portfolio, do so with cash as it's the only truly uncorrelated asset. Seriously. Do you trust "diversification" at times like this?"
What do you think? What is your strategy?
"Takeaways: 1. "Crypto coins are highly correlated." Kind of true, but look at the market as recently as Nov 2017.. 0 correlation! 2. Correlations are currently ridiculously high at 0.81 and have been persistently high since early Feb 2018. It seems unhealthy/unsustainable.
Strategically, in increasing/high correlation environments, I prefer having a highly concentrated portfolio.
If you're looking to diversify your portfolio, do so with cash as it's the only truly uncorrelated asset. Seriously. Do you trust "diversification" at times like this?"
What do you think? What is your strategy?
Jump to: