The model portfolio Conservative KW8: Gentle Rise with a bull market

the another price jump raised the prices of the crypto-currencies to new heights. Ethereum could go as the best performing Asset out of the week, up on XRP, however, have all of the other comparison assets, a good Performance. For the sample portfolio, this led to a month plus of eight per cent.

Dr. Philipp Giese
24. February 2019BTC$3.724,45 -5.78% part Facebook Twitter LinkedIn xing mail

every week, we Like to compare the progress of the model portfolio Conservative, well-known from the cryptographic compass, compared to other assets: the rates of Bitcoin, XRP, and Ethereum, as well as one of the Top 10 existing comparison portfolio. When comparing the portfolio to the weighting of the individual positions is adapted to the relative market capitalization.

With a Pump, to the left, in the meantime, Bitcoin is the US $ 4,000 test, increases the hope that the bear market was actually his floor. Ethereum and out of the Top 10 existing comparison portfolio could be on course for gains of 21 percent and 13 percent proud of. Bitcoin could also have a Plus of ten percent, while XRP with seven per cent – is again – the final light.

a similar result, with a view to the last month. Between the 22. January and 7. February, the courses of up to twelve percent. Up on XRP all the other cases, the Assets in the port had, however, incredible profits.

model portfolio Conservative: After all, a month plus of just under eight per cent

It shows: The model portfolio Conservative even in a bull market up to its name. In the bear market, the sluggish behaviour is a strength in the bull market, according to a weakness. Nevertheless, you should look on the Positive side: the security-focused sample portfolio was able to achieve in the last month, an increase of nearly eight percent:

Self-XRP has a positive Performance. The Portfolio is Conservative in terms of Performance is significantly behind Bitcoin, Ethereum and out of the Top 10 existing comparison portfolio. Regarding risk, Value-at-Risk and Drawdown it is, however, still at the top:

Read also: The model portfolio Conservative KW5: losses less than with Bitcoin

the updraft continues, it could be worthwhile to place a stronger focus on variables such as the Sharpe Ratio. This ratio of Performance and risk used in the Investment as a measure. Assets with a high level of Performance and/or low risk have a high Sharpe Ratio, and the promise of a good Investment. Over the last month of the Bull Run in Ethereum has ensured that the Sharpe Ratio was 0.20, significantly higher than the Portfolio Conservatively. The latter could produce, as the comparison portfolio consisting of the Top 10, with a Sharpe Ratio of 0.17. Thus, it is still a better Investment than Bitcoin (0,16) and, above all, XRP (0,02).

long-Term development: hope on the ground stops at

If we look at the development of all considered Assets since the beginning of August, we recognize: The head - to-head race between XRP and the Portfolio continues to be Conservative. Both Assets have lost since the beginning of August, almost 30 percent of its value. Furthermore, this is despite all the current upward movements nothing against the other Assets that have lost in the same time, between 47 and 63 per cent:

as for other metrics inherent in our model portfolio continues to be in the first place. While all of the other Assets had to cope with Drawdowns of between 51 and 81 percent, are in the Portfolio of a Conservative "only" 43 percent. Likewise, it is the only Asset whose Value-at-Risk, even at a confidence level of 99 per cent is still single-digit. The VaR99 of -7% means that based on the price developments since August, the daily losses are up to 99 percent of a maximum of seven percent. In all other cases, the Assets, the maximum rate loss of 99 percent of more than ten percent.

Read also: development of the model portfolio Conservative KW51

In the last week, we concluded that the upside potential of our model portfolios is tested. This is going to happen. Although you can rose say negative, other Assets increased by much more, in the long term, but so far, the bill. For the crypto-market, it proved to be a relatively safe Investment, which yields in a bull market, although less, but still Plus.

data on the Basis of cryptocompare.com and coingecko.com

The weightings of the Portfolio to be Conservative are created using the Capital asset Pricing Model. The application on the crypto-market is dedicated to the monthly Special from the crypto compass edition June 2018. As a single asset has a variety of well-known crypto to be taken into account currencies. Accordingly, among other things, Bitcoin, Ethereum, XRP, Monero and DASH are represented. In addition, a Position in Fiat or a Stable Coin like Tether is created.

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