ICONOMI — Which DAAs to choose to maximise diversification if already holding BLX
Today Iconomi has released the first Digital Assets Arrays (DAAs). Until today the only DAA which users could buy was Blockchain Index (BLX). From today it is possible to buy into 12 new DAAs.
In this article we are not going to comment on the choices or the strategy of each DAA. We are instead going to analyse how the new DAAs differ from Blockchain Index (BLX). The idea is that an investor already holding into BLX might want to invest in a DAA that is as different as possible from BLX, in order to diversify the investment.
The picture blow shows which cryptocurrency each DAA holds. All the DAAs hold Bitcoin and almost all of them hold Etherum, Aragon and Waves.
In order to evaluate the difference with BLX we define two score:
- Different Decisions: one point means a cryptocurrency is in the DAA but not in BLX or that it is in BLX but not in DAA
- Additional Cryptocurrencies: one point means a cryptocurrency is in the DAA but not in BLX
By evaluating Different Decisions, Crush Crypto Core (CCC) is the DAA with the highest score. That happens because CCC and BLX have in common just Bitcoin, Ethereum, Aragon and Dash. All the other holdings are different. CCC gets one point for each holding which is in BLX but not in CCC and for each one that is in CCC but not in BLX. That eventually sums up to 25.
On the other hand in terms of the Additional Cryptocurrencies score the winner is Asymmetry Asset Array Index (AAAX). The reason why AAAX is not high in the Different Decisions table comes from the fact that AAAX holds many cryptocurrencies, so it holds most of the BLX ones, plus 12 more.
Of course these scores do not take into account the weight assigned to each holding. The following article will look into that and it will contain an analysis of the historical return of each DAA. We are also going to explore the correlation of the value of the assets in each DAAs through time, in order to give guidelines that help to invest in a diversified set of DAAs.
