Matrixport: Including Bitcoin in your portfolio can help improve Sharpe ratio and overall returns

BlockBeats news, on October 2, Matrixport released today's chart report, saying that academic papers often explore how Bitcoin can improve investors' Sharpe ratios, improve portfolio diversification, and reduce overall volatility for institutional investors. Many aspects have also confirmed the benefits of including Bitcoin in an investment portfolio. However, a more direct way is to emphasize Bitcoin's continued outperformance compared to other assets. In 2024, this trend continued, with Bitcoin's year-to-date return exceeding 53%, bringing rich returns to investors.

It is reported that the Sharpe Ratio is an important financial indicator used to measure the risk-adjusted return of an investment. It was proposed by Nobel Prize winner William Sharpe to help investors evaluate the performance of their portfolios. A high Sharpe ratio indicates that the portfolio has achieved a higher excess return while taking risks, and is generally regarded as performing well. A low Sharpe ratio may mean that the returns of the portfolio have failed to effectively compensate for the risks taken.