Portfolio Management KIT

A Portfolio Management ( Intellectual Thread)

Portfolio construction in Traditional Finance is a highly intense, scientific field, backed by financial services and products that effectively underpin modern "capital" practices related to asset management, risk management, insurance and reinsurance banking industries. We are presenting here a portfolio construction model dedicated only to public cryptocurrencies supported by our partners at Coin Gecko + 𝕔𝕣𝕪𝕡𝕥𝕠𝕜𝕖𝕟𝕓𝕠𝕒𝕣𝕕.𝕔𝕠𝕞 is Cryptoken Board, robo-advisory that helps clients with crypto portfolio management.

Let's define portfolio management simply: practice or process of managing a wide range of investments to reach set financial goals. #TradeFi usually further establishes four (4) different types of PM strategies, Active / Passive / Discretionary and Nondiscretionary. Cryptocurrency market-place have now only begin developing one (1) of these strategies (Index) like the CoinDesk DeFi index, albeit capital formation and venture investing are actively deploying idle funds in Liquidity Pools to earn additional trading fees. 

We can say that cryptocurrencies should technically have a total of five (5) investment strategies eh Thereafter below, we're presenting CB portfolio management model that proposes two disparate portfolio construction methodologies baked by professional and standardized performance and risk metrics, CB-DFA-250 BI package fully supported by our Cryptoken Board the smartest web-based crypto terminal!

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Sample Portfolio Risk Measurement Chart

(1/3) #Stablecoins *(Yield Bearing) support that can be added to your portfolio $USDc $USDe Systematic Risk (cannot be diversified away) Idiosyncratic Risk can (non Systematic). Let's briefly introduce a concept of diversification that by adding stablecoin yield bearing assets to mitigate asset specific risk or idiosyncratic risk. This is a type of investment risk that is endemic to an individual asset (like a particular company's blockchain operations / liquidity / regulatory and technical ), a group of assets (like a particular sector). 

Via the above porfolio (add 10% yield to Idiosyncratic risk can generally be mitigated in an investment portfolio through the use of diversification.

Market Weighted Bitcoin and Ethereum Portfolio + Diversification

(2/3) #AssetAllocation Cryptoken Board modules can help clients create & evaluate various portfolio construction options, but is only natural to in addition to [ 1 portfolio ] Bitcoin / Ethereum MC weighted [ 2 portfolio ] composed entirely of Altcoins. Cryptoken Board is promulgated with business intelligence which compiles all relevant portfolio financial stats in one package.

Let us take a look at the next portfolio 2, which is composed of the Altcoins found in the top 10 excluding Bitcoin nd Ethereum and we can see and then easily compare in real time client risk - averse threshold like Value At Risk, Sharpe Ratio, CAGR, Profitability.

For Portfolio 2, we selected Ripple, Binance, Dogecoin, Cardano and Tron to evaluate the performance of the overall portfolio where market weights are determinized by the coin total capitalization. 

Market Weighted Altcoin Portfolio

(3/3) #CryptoTrading Cryptoken Board module also provide additional descriptive statistics that seek to capture digital asset trading  momentum. One of these examples cb_prediction oracle that places t-1 trading price in the context of the previous 30/60/90 trading days, by assigning a percentile. Further more there are other portfolio management metrics at Cryptoken Board like Upside Potential or Portfolio Delta, which would be theoretical estimate of how much an port value may change given a $1 move OR *augment #RoR by using leverage or delta hedging $btcusd.

Thank you for reading this thread, we welcome everyone to join Cryptoken Board community on X platform or our close nit group of the OGs in our Telegram channel eh

When to i) Hedge portfolio and ii) use Leverage

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