Research on Adding Biotech and Bitcoin to Portfolio

Abstract

Investors are still worried about the variables brought about by COVID-19 and the presidential election because of the recent growth trend of the stock market despite the macroeconomic downturn. This article speculated whether the portfolio of biotech owned stocks and bitcoin can cope with these uncertainties. At the same time, investors need to pay attention to the companies that are studying the COVID-19 vaccine and whether they have state financial support. Also, Python and Excel were used to explore the daily return, annual volatility, and portfolio performance of biotechnology stocks. Besides, a multiple linear regression model on CPI and GDP focusing on whether macroeconomic factors affect bitcoin was established. These results support the conclusion that currently adding biotech supported by the federal government and bitcoin into the portfolio could respond to the risks from COVID-19.