Research: Just 10% more Bitcoin in a typical portfolio for higher returns

Data research agency TradeBlock found when investing in portfolio returns that as long as 10% of Bitcoin is added to a typical portfolio, higher returns can be achieved in 2019, but with increased risk and volatility. The comparison group used by TradeBlock is a typical portfolio, which contains 60% of stocks and 40% of bonds, while the combination that increases the bitcoin allocation includes 55% of stocks, 35% of bonds, and 10% of Bitcoin. The initial investment for this comparison was $ 1,000, and by the end of 2019, the return on the asset portfolio with bitcoin exceeded the typical portfolio. The Sharpe ratio is a measure of risk-adjusted return. A higher ratio indicates that the asset can obtain higher returns with less risk. The Sharpe ratio of a typical investment portfolio is 0.66, and the increase in the Bitcoin allocation is 0.46.