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Common Risk Factors in Cryptocurrency / Yukun Liu, Aleh Tsyvinski, Xi Wu.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Liu, Yukun.
Contributor:
National Bureau of Economic Research.
Tsyvinski, Aleh.
Wu, Xi.
Series:
Working Paper Series (National Bureau of Economic Research) no. w25882.
NBER working paper series no. w25882
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2019.
Summary:
We find that three factors - cryptocurrency market, size, and momentum - capture the cross-sectional expected cryptocurrency returns. We consider a comprehensive list of price- and market-related factors in the stock market, and construct their cryptocurrency counterparts. Nine cryptocurrency factors form successful long-short strategies that generate sizable and statistically significant excess returns. We show that all of these strategies are accounted for by the cryptocurrency three-factor model.
Notes:
Print version record
May 2019.

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