HSBC Research
After re-running millions of portfolio simulations using a recent data sample, we find that a small allocation of 1-5% to crypto can enhance portfolio diversification." - HSBC Research You may hate crypto but allocate 1-5% to Bitcoin.
Looking at historical risk adjusted returns to argue that a specific asset enhances portfolio performance is very dumb. I bet having NVIDIA in your portfolio also has a positive effect on diversification - lol.
Diversification means different class of assets ,lol
Ummm duh? The chart you posted is making an argument that “good diversification” is adding an asset that increases portfolio return disproportionate to the increase in portfolio volatility. The data only goes back to 2022. Any asset that had outsized returns over that period would show similar “diversification benefits”. It is meaningless though.
All I see here is adding crypto means fewer gainz
Says who? HSBC! Of course they would advocate won't they, given that they thrive doing money laundering
No