Conservative sample portfolio: Far behind Bitcoin secret, but still stable

The new year starts with a strengthened Ethereum share price, which has been profitable by more than sixty percent since mid-December. Although the Conservative sample portfolio was unable to keep pace, it shows a much more stable development than Ethereum.

As explained at the beginning of November, we would like to follow the development of our model portfolio “Conservative” from the Crypto Compass on a weekly basis. We compare the development of this portfolio with that of Bitcoin, Ethereum, XRP and a comparison portfolio composed of the top 10 with weightings proportional to the respective market capitalisation.

Conservative means that the Bitcoin secret portfolio is comparatively low-risk

It is therefore formed from older crypto currencies such as Bitcoin secret or Ethereum. A stable coin or Bitcoin secret is also built up. Without going into too much detail, the Conservative portfolio consists of the following positions (ordered from the strongest to the weakest): optionally Tether, another stable coin or a Fiat position, Omnilayer Protocol, Counterparty, Ethereum, Bitcoin, Dash, Siacoin, Monero and Ripple.

The hope that the much-quoted ground will be reached is currently more than two weeks old. Since the downturn came to an end in mid-December, all assets have risen by Christmas. Bitcoin, Ripple and the comparative portfolio formed from the Top 10 have been moving sideways since then. For Ethereum, the Constantinople-Hard-Fork expectation seems to give the bulls wings, so that the price has now risen 40 percent compared to the previous month.

Conservative sample portfolio: clearly behind Ethereum, but also much more stable

Our sample portfolio joined the sideways movement of the other crypto currencies. Compared to the previous month, it rose about as much as the comparison portfolio consisting of the top 10 and is above Bitcoin and XRP. Of course it is far behind Ethereum:

If one focuses on the average daily return in the last month, our sample portfolio occupies a rather disappointing position in the lower midfield:

For a long-term investment, however, as we know, the view of the average return alone is incomplete. As the other key figures show, the Conservative model portfolio continues to be the top performer. The risk is significantly lower than that of the other assets. Likewise, the maximum drawdown last month of twelve percent was significantly lower than that of the comparable assets, whose drawdowns were at a minimum of 18 percent. After all, the value in loss is lower than the corresponding values for Bitcoin, Ethereum, XRP or the comparison portfolio consisting of the top 10 with a probability of 95 percent and 99 percent respectively.

As far as the return is concerned, a small “weakness” could be observed, as assumed in calendar week 51 of last year. However, the portfolio was still able to confirm its claim to be a secure investment in the crypto market. This is also shown by the development of the assets under review over the entire fourth quarter of 2018: