DIVERSIFICATION DIAGNOSTICS FOR PORTFOLIO INVESTMENT USING COMBINATION OF CRYPTOCURRENCY AND STOCK PRICE.

Abstract

Main objective of this study is to develop investment portfolio with diversifications using two different assets. Modern portfolio theory develop investment portfolio to maximize expected return based on a given level of market risk. This study selected cryptocurreny (Bitcoin) and stock price (Petronas Gas Berhad) as the combination in developing investment portfolio. In this analysis, mean return for Bitcoin is 9.890 %. Meanwhile, the mean return for stock price of Petronas Gas Berhad is -0.496 %.The value of correlation is between two assets is -0.372. Result shows the portfolio risk can be reduced with the diversification approach for different assets. Therefore, findings of this study are important for assisting investors to maximize their return for given level of investment risk.