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Cryptocurrencies and Risk Mitigation

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Cryptofinance and Mechanisms of Exchange

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

Since their surge in the last decade cryptocurrencies have gained considerable attention in financial markets, and in academic research. Scholars and practitioners are showing interest in the role of cryptocurrencies as part of investors’ risk management strategies. Understanding how the returns of different cryptocurrencies, and the associated volatilities, relate to the returns and volatilities of other assets (including other cryptocurrencies, stocks, commodities, and bonds, among others) is crucial to derive conclusions regarding the potential hedging and diversification advantages they could offer to investors’ portfolios. The notion of volatility transmission, its intensity and direction, is of importance in explaining the risk management benefits that could stem from adding a specific asset, such as cryptocurrencies, to an existing portfolio.

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Author information

Authors and Affiliations

  1. École Supérieure de Commerce, Tunis, Tunisia

    Haifa Amairi

  2. Telfer School of Management, University of Ottawa, Ottawa, ON, Canada

    Haifa Amairi, Boushra El Haj Hassan & Ahlem Zantour

  3. IHEC Carthage, Tunis, Tunisia

    Ahlem Zantour

Authors
  1. Haifa Amairi
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  2. Boushra El Haj Hassan
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  3. Ahlem Zantour
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Corresponding author

Correspondence to Boushra El Haj Hassan .

Editor information

Editors and Affiliations

  1. CEMOTEV, University Paris-Saclay, Versailles, France

    Stéphane Goutte

  2. IPAG Business School, Paris, France

    Khaled Guesmi

  3. Telfer School of Management, University of Ottawa, Ottawa, Ontario, Canada

    Samir Saadi

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Amairi, H., Hassan, B.E., Zantour, A. (2019). Cryptocurrencies and Risk Mitigation. In: Goutte, S., Guesmi, K., Saadi, S. (eds) Cryptofinance and Mechanisms of Exchange. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-30738-7_11

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