
PANews May 5 news, according to Cointelegraph, data from Fidelity Digital Assets shows that if a traditional 60/40 portfolio allocates 3% to Bitcoin, the annualized return over the past 10 years would increase from 9.4% to 14.6%.
The data indicates that after allocating 3% to Bitcoin, the portfolio's annualized volatility increased from 10.26% to 12.04%, the Sharpe ratio rose from 0.72 to 1.01, and the maximum drawdown widened from 20.64% to 21.79%. Furthermore, if the allocation of Bitcoin increases to 10%, the portfolio's annualized return would rise to 24.09%, but the annualized volatility and maximum drawdown would also increase to 18.41% and 26.72%, respectively.
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