Analyze the Impact of Bitcoin on Stock Portfolio’s Risk and Return Based on Past 3 Years’ Data

Jiaqi Qin; Shansong Huang; Boying Yang; Yilin Ma; Zheng Tao; Shuqi Chen

doi:10.2991/978-94-6463-010-7_121

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Analyze the Impact of Bitcoin on Stock Portfolio’s Risk and Return Based on Past 3 Years’ Data

Authors

Jiaqi Qin¹, Shansong Huang¹, Boying Yang², Yilin Ma¹, Zheng Tao³^{, *}, Shuqi Chen²

¹Department of Mathematics, Wenzhou-Kean University, Wenzhou, 325060, Zhejiang, China

²College of Business and Public Management, Wenzhou-Kean University, Wenzhou, 325060, Zhejiang, China

³Department of Statistics, National University of Singapore, Singapore, 119077, Singapore

^*Corresponding author. Email: e0729756@u.nus.edu

Corresponding Author

Zheng Tao

Available Online 2 December 2022.

DOI: 10.2991/978-94-6463-010-7_121 How to use a DOI?
Keywords: Bitcoin; Monte Carlo Simulation; Investment Portfolio; COVID-19
Abstract: Everyone is eager for high yield and low risk. In this research, we use Markowitz’s investment theory and Monte Carlo simulation to find the optimal investment portfolio and then study the impact of adding Bitcoin to the traditional investment portfolio on the cumulative rate of return. Our results show that the return performance of the investment portfolio with Bitcoin is better than that of the traditional investment portfolio. Moreover, despite the impact of COVID-19 on the global economy and the Federal Reserve’s quantitative easing policy, it is beneficial for investors to include Bitcoin in their portfolio allocation.
Copyright: © 2023 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 2022 International Conference on Artificial Intelligence, Internet and Digital Economy (ICAID 2022)
Series: Atlantis Highlights in Intelligent Systems
Publication Date: 2 December 2022
ISBN: 978-94-6463-010-7
ISSN: 2589-4919
DOI: 10.2991/978-94-6463-010-7_121 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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ris enw bib

TY  - CONF
AU  - Jiaqi Qin
AU  - Shansong Huang
AU  - Boying Yang
AU  - Yilin Ma
AU  - Zheng Tao
AU  - Shuqi Chen
PY  - 2022
DA  - 2022/12/02
TI  - Analyze the Impact of Bitcoin on Stock Portfolio’s Risk and Return Based on Past 3 Years’ Data
BT  - Proceedings of the 2022 International Conference on Artificial Intelligence, Internet and Digital Economy (ICAID 2022)
PB  - Atlantis Press
SP  - 1175
EP  - 1184
SN  - 2589-4919
UR  - https://doi.org/10.2991/978-94-6463-010-7_121
DO  - 10.2991/978-94-6463-010-7_121
ID  - Qin2022
ER  -

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