Author: Désirée Müller

In times of crisis, investors tend to flee to the safe haven of “cash”. This behaviour affects most other asset classes. Crypto also experienced a fall in prices during the Corona crisis. In the medium term, however, the high independent component of crypto leads to a low correlation with traditional asset classes. Alpha and beta are two important measures in portfolio theory which can also be applied to crypto. Alpha measures the project-specific return and Beta the market-dependent return. Crypto shows a high Beta in the short term. However, due to the high Alpha, there is hardly any correlation to…