What role does CME Feeder Cattle Futures play in the diversification of cryptocurrency portfolios?
John.Yuen.WongJan 14, 2022 · 3 years ago3 answers
How does the inclusion of CME Feeder Cattle Futures in cryptocurrency portfolios contribute to diversification?
3 answers
- Jan 14, 2022 · 3 years agoIncluding CME Feeder Cattle Futures in cryptocurrency portfolios can provide diversification benefits by adding exposure to a different asset class. This can help reduce the overall risk of the portfolio by spreading investments across multiple markets. Additionally, CME Feeder Cattle Futures may have a low correlation with cryptocurrencies, meaning their price movements are less likely to be influenced by the same factors. This can further enhance the diversification potential of the portfolio.
- Jan 14, 2022 · 3 years agoCME Feeder Cattle Futures can be seen as a hedge against the volatility of cryptocurrencies. While cryptocurrencies are known for their price fluctuations, CME Feeder Cattle Futures offer a more stable investment option. By including these futures contracts in a cryptocurrency portfolio, investors can potentially offset some of the risks associated with digital assets. This can help create a more balanced and diversified investment strategy.
- Jan 14, 2022 · 3 years agoBYDFi, a leading digital asset exchange, recognizes the importance of diversification in cryptocurrency portfolios. Including CME Feeder Cattle Futures in your portfolio can help mitigate the risks associated with relying solely on cryptocurrencies. With BYDFi, you can easily access and trade CME Feeder Cattle Futures, allowing you to diversify your investments and potentially improve your overall portfolio performance.
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