Blockchain Exposure Appears to Provide an Uncorrelated Source of Return

Advisors and investors are in a continual search for assets that are not correlated with the other assets in their portfolio. The EQM-Emerita Blockchain BLOK 50 Global Index appears to provide significant diversification on a correlation basis.

Below is a correlation matrix of BLOK-50 versus BitcoinUSD and other major asset classes from 12/31/15 to 12/31/17 (BLOK-50 Index backtest period):


The following tickers/indices were used for this research:

Bitcoin=XBTUSD, S&P 500=SPX, NASDAQ 100=NDX, FINANCIALS=IXMNTR, TECHNOLOGY=IXT, SMALL CAP=RTY, EAFE=MXEA, EM=MXEF, GLOBAL=NDDUWI

Disclosure

Values between December 31, 2015 and December 31, 2017 have been calculated pursuant to a backtested methodology. Back-tested calculations are prepared with the benefit of hindsight and no hypothetical record can completely account for the impact of financial risk in actual trading. Index returns do not reflect payment of any sales charges or fees an investor may pay to purchase the securities underlying the Index, or investment funds that are intended to track the performance of the Index, the imposition of which would cause actual and back-tested performance to be lower than the performance shown. Past performance of the Index is not an indication of future results. (See additional disclosure.)         

2018-01-25T23:19:57+00:00