Which Crypto Stocks For Your Portfolio : MARA, RIOT, COIN
Bitcoin has remained above $27,000 at the beginning of October and crypto stocks have benefitted from this bitcoin surge.
As investor, I have some crypto stocks in my portfolio but it is always advisable to look at how we adjust the weightage as market condition changes and what conditions do we use to determine?
In this article I will be sharing on how I will be evaluating the daily returns, daily traded volume and cumulative returns for these 3 crypto stocks currently in my portfolio: $Marathon Digital(MARA.US$ $Riot Platforms(RIOT.US$ $Coinbase(COIN.US$
Relationship of Daily Returns for Amazon, Alphabet, Microsoft
These 3 crypto stocks always moved when Bitcoin surged, and they are bitcoin miners and COIN is crypto exchange platform.
If we look at the daily returns, we can see very clearly that MARA and RIOT being miners, shared similar daily returns pattern, whereas COIN has a different pattern.
But at the end of the day, who will provide a better cumulative returns, I shall share in later section.
Daily Traded Volume For 3 Stocks Over 600 Trading Period
Before we look at the cumulative daily returns, I would like to bring your attention to how much volume is traded daily.
From the chart, we can see that MARA have a higher daily traded volume, RIOT came close on some day to MARA, COIN does not seem to have much traded volume in recent days.
The reason why MARA is surging in volume because another factor we look at is the bitcoin mined in September was more than triple that of a year ago, and up 16% from the month before.
Similar MARA has enjoyed an increase in bitcoin production from August due to improved uptime and decreased curtailment activity in Texas.
Cumulative Daily Returns For 3 Stocks Over 600 Trading Period
For cumulative daily returns, though we see Marathon (MARA) increase the number of bitcoins produced in August and September, but RIOT has very close cumulative returns.
This would mean if we were to have these 2 crypto stocks, it would be advisable to place equal weightage on them,
How We Should Plan Our Portfolio.
Considering my portfolio, I currently have higher weightage on MARA, which I believe I should be adjusting it based on the cumulative daily return seen so far.
This is how the before and after portfolio for crypto stocks should look like in mine.
I will be reducing MARA and COIN holdings and increasing RIOT, MARA and RIOT would hold similar weightage at the end.
Summary
Based on what I have shared, this is one of the way we can look at a group of stocks and see how we can adjust the weightage in our portfolio.
For me, I was not looking at the returns, rather based on news, now that I have seen a pattern in returns, I believe more weightage on MARA and RIOT should be good. And only 5% reduction in COIN weightage as it is of a different business model.
Appreciate if you could share your thoughts in the comment section whether you think it is a good time to invest in crypto stocks for the long term, as I believe crypto currency adoption should be soon widely regulated, crypto stocks should have a good run.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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FiReBiTriXiE : ALL!!
FiReBiTriXiE : I need Bitcoin to plunge to 20k or lower! Then I’m ready to invest in all these stocks including Bitcoin that’s what I’m hoping and waiting for! Need this to happen before the next halving where then it will spark bitcoins rise again!