How Treasury Rates Impact All Major Financial Assets
Treasury rates have a tremendous impact on financial assets through their influence on the cost of borrowing. Therefore, understanding the relationship between treasury rates and financial assets is of primary importance. We found that while treasury rates are positively related to financial assets such as oil and US dollar, they are negatively related to S&P500 […]
Economics
Impact of Macroeconomic Factors on Financial Assets and Portfolios
This research article analyzes the influences of determinant macroeconomic factors – GDP, GDP Surprise, Inflation, and Inflation Surprise – on asset returns and asset correlations. In particular, we analyze how the previous factors impact the performance of different investment portfolios during various phases of the economic cycle. We found that portfolios that show the highest […]
Global Macro
Which Portfolios Outperformed During the Covid-19 Crisis?
This research article analyzes the performance of different portfolios in the past two years from July 2018 to July 2020 and particularly during the coronavirus pandemic. We found that multiple-asset portfolios outperform non-diversified portfolios, especially the ones focus on equities. The high risk-adjusted and robust returns of such portfolios would benefit investors in the long […]
Investing
How to Profit from Bitcoin Volatility with an Active Long-Short Crypto Investment Strategy
Bitcoin is a volatile asset. However, it also provides investors opportunities in reaping the excess returns associated with risks. This report analyzes the performance of Bitcoin and a Long-Short Portfolio investing in Bitcoin and other crypto currencies. The analysis shows that the Long-Short Portfolio performance, which is almost uncorrelated to Bitcoin, beats the Bitcoin performance, […]
Investing
How to Gain Higher Risk-Adjusted Returns by Investing in Bitcoin
Investors today are facing many challenges in financial markets. Bitcoin, as one of the new investment assets, received increasing attention. This research paper analyzes the performance of Bitcoin from 2013 until today, with a special focus on its performance during the pandemic. We found that including Bitcoin in a portfolio would reward investors with higher […]
Investing
3 Major Benefits of Crypto Liquidity Provision on Price, Volume and Volatility
Liquidity and market making are crucial concepts that investors need to understand before making investment decisions in the cryptocurrency markets. It would be easier for them to predict the future market movement and to manage their trading strategies in a liquid market with low execution costs. In this report, we analyze the benefits of crypto […]
Investing
Crypto Hedge Funds: Don’t Pay Alpha for Beta
Many crypto hedge funds were launched in the past 2 years because of a significant interest growth in cryptocurrencies. While some of these funds include experienced teams coming from other hedge funds, many of them were actually setup to make a quick profit during the hype. In this article we will show why most so […]
Crypto
How to Trade and Hedge Cryptocurrencies and Related Transaction Cost Analysis (TCA)
Cryptocurrencies experienced significant interest during the past 2 years. Many investors and companies became attracted to the market because of the apparently high returns they could get from this new asset class. At the same time, those investors who bought cryptocurrencies in late 2017 sustained a significant loss and drawdown in the bear market of […]
Crypto
ICO Treasury Management: Why Should ICO Firms Hedge their Crypto Balances?
Many companies in 2017 and 2018 decided to raise capital through an ICO by issuing tokens in exchange of cryptocurrencies like Bitcoin or Ethereum. We find that, while these firms managed to raise billions of dollars in this period, they didn’t manage their crypto holdings price risk, losing on average around 80% of the entire […]
ICO
ICO Market Analysis: What Really Drives the ICO Capital Raise Process?
Many companies in 2017 and 2018 decided to raise capital through an Initial Coin Offering (ICO). While the process seemed very promising at the beginning, it also showed its limitations around the end of 2018. In fact, many ICO’s were in fact scams, while other failed to deliver the promises towards their investors. In this […]
ICO