Achieving Portfolio Diversification through Cryptocurrencies in European Markets

Abstract

Background: Cryptocurrencies represent a specific technological innovation in financial markets that keeps getting more and more popular among investors around the world. Given the specific characteristics of the cryptocurrencies, this paper examines the possibility of their use as a diversification instrument.

Keywords

• bitcoin
• portfolio diversification
• volatility clustering
• wavelet
• cryptocurrencies
• g11
• c32
• f31
• c58