Matrixport: Including Bitcoin in the portfolio helps improve the Sharpe ratio and overall returns
ChainCatcher news, Matrixport released today's chart report, stating that academic papers often explore how Bitcoin enhances investors' Sharpe ratio, improves portfolio diversification, and reduces overall volatility for institutional investors. Multiple aspects also confirm the benefits of including Bitcoin in a portfolio. However, a more direct approach is to emphasize Bitcoin's continued outstanding performance compared to other assets. In 2024, this trend continues, with Bitcoin's year-to-date return exceeding 53%, providing substantial returns for investors.It is reported that the Sharpe Ratio is an important financial metric used to measure the risk-adjusted return of an investment. It was proposed by Nobel laureate William Sharpe and aims to help investors assess the performance of their portfolios. A high Sharpe ratio indicates that the portfolio has achieved higher excess returns for the level of risk taken, and is generally considered to perform well. A low Sharpe ratio may suggest that the portfolio's returns have not effectively compensated for the risks taken.