aswathdamodaran.blogspot.com · 2021-01-27 · 1954d

Data Update 3 for 2021: Currencies, Commodities, Collectibles and Cryptos

This article analyzes 2020 market performance across currencies, commodities, collectibles, and cryptocurrencies, classifying investments into four categories (assets, commodities, currencies, collectibles) and examining how each behaves during crises. The author argues that Bitcoin functions primarily as a collectible rather than a currency or commodity, and demonstrates that 2020 correlations across global markets significantly reduced diversification benefits.

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Metrics in this report

Bitcoin Annual Return

300%percent

Full year 2020 performance

Bitcoin Correlation with S&P 500

0.43correlation coefficient

Daily returns throughout 2020

Copper Annual Return

25.80%percent

Full year 2020 performance

Equity Correlation - US Large Cap to Emerging Market Equities

0.60correlation coefficient

Daily returns throughout 2020

Equity Correlation - US Large Cap to European Equities

0.70correlation coefficient

Daily returns throughout 2020

Equity Correlation - US Large Cap to US Small Cap

0.89correlation coefficient

Daily returns throughout 2020

Ethereum Annual Return

469%percent

Full year 2020 performance

Ethereum Correlation with S&P 500

0.45correlation coefficient

Daily returns throughout 2020

Gold Annual Return

24.17%percent

Full year 2020 performance

Gold Performance in Crisis

-5.19%percent

crisis period

Gold price change during February 14 - March 23, 2020

Silver Annual Return

46.77%percent

Full year 2020 performance

Silver Performance in Crisis

-29.34%percent

crisis period

Silver price change during February 14 - March 23, 2020