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Question #485

What does Bitcoin’s near-zero correlation with assets like the Nasdaq and gold suggest for its role in a diversified investment portfolio?

Catégorie: General
It suggests Bitcoin can act as a non-correlated asset, helping to reduce overall portfolio volatility
It indicates Bitcoin’s returns are guaranteed regardless of market conditions
It shows Bitcoin always moves in opposite direction to Nasdaq and gold

Pourquoi est-ce la bonne réponse?

This is correct because adding assets that do not move in tandem with stocks or gold can smooth returns. Bitcoin’s near-zero correlation means its price fluctuations are largely independent, which can lower risk in a diversified portfolio.

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