Cryptocurrencies Don't Behave Like Other Assets

Cryptocurrencies Don't Behave Like Other Assets: By Brian C. Albrecht | A new NBER working paper shows how cryptocurrencies have no exposure to most.  Cryptocurrencies offer the possibility of a diversified asset in a portfolio.  As the authors of a new study point out: the risk-return tradeoff of cryptocurrencies (Bitcoin, Ripple, and Ethereum) is distinct from those of stocks, currencies, and precious metals. Cryptocurrencies have no exposure to most common stock market and macroeconomic factors. They also have no exposure to the returns of currencies and commodities. In contrast, we show that the cryptocurrency returns can be predicted by factors which are specific to cryptocurrency markets...