Much of how successfully crypto assets can be properly integrated into conventional investment portfolios will depend on how tools from modern portfolio theory (MPT) can be utilized. MPT goes all the way back to the 1950s, when Harry Markowitz proposed that any asset’s risk/return profile should not be considered in isolation, but evaluated by how it affects the overall portfolio's risk and return. Numerically, this is done by utilizing correlation, a measure borrowed from the field of statistics that quantifies the statistical relationship, whether causal or not, between two random variables.
Observations Lab
Macro Thoughts
Capital Markets Lab
Asset Management
Markets in History
Beyond Finance
Quotes on the Fly
Chart Gallery
Academia
Latest Observations
Harris Associates, September 5, 2019
Pension Funds
Pension Funds Research
Pension Funds Switzerland
Pension Funds Germany
Pension Funds Denmark
Pension Funds Finland
Pension Funds Norway
Pension Funds Sweden
Pension Funds United Kingdom
Pension Funds Netherlands
Latest Observations
Harris Associates, September 5, 2019
Wealth Managers
The Library
The Chart Room
Quotes on the Fly
The Time Capsule
Beyond Finance
The Coffee Chronicles
The Synchronicity Chamber
The Joseph Schumpeter Room
The Friedrich Hayek Auditorium
The Central Bank Hallway
Latest Observations
Harris Associates, September 5, 2019