Financial Innovation

Table 3 Summary of wavelet coherence of Bitcoin and gold with indices

From: Diversification evidence of bitcoin and gold from wavelet analysis

		FTSE 100	FTSEINDO	FTSEMY	NIKKEI	NIFTY	S&P 500	GOLD
BITCOIN	Short term	\(\surd\)	\(\surd\)	\(\surd\)	\(\surd\)	\(\surd\)	\(\surd\)	\(\surd\)
	Medium term	\(\surd ^{1}\)	\(\surd ^{2}\)	\(\times\)	\(\surd ^{3}\)	\(\surd ^{4}\)	\(\surd ^{5}\)	\(\surd ^{6}\)
	Long term	\(\surd ^{7}\)	\(\surd ^{8}\)	\(\surd ^{9}\)	\(\times\)	\(\surd ^{10}\)	\(\surd ^{11}\)	\(\times\)
GOLD	Short term	\(\surd\)	\(\surd\)	\(\surd\)	\(\surd\)	\(\surd ^{12}\)	\(\surd\)
	Medium term	\(\times\)	\(\surd ^{13}\)	\(\surd ^{14}\)	\(\times\)	\(\times\)	\(\surd ^{15}\)
	Long term	\(\surd ^{16}\)	\(\surd ^{17}\)	\(\surd ^{18}\)	\(\surd ^{19}\)	\(\times\)	\(\surd ^{20}\)

\(\surd\): Diversification possible
\(\times\): Diversification not possible
\(^{1}\) Only possible during normal market condition
\(^{2}\) Diversification possible as crisis prolongs
\(^{3}\) Only possible during normal market condition
\(^{4}\) Only possible for investment horizons of 32–64 days
\(^{5}\) Possible during normal times for investment horizons of 32–64 days
\(^{6}\) Possible during normal times for investment horizons within 32 days
\(^{7}\) Only possible during normal market condition
\(^{8}\) Diversification possible as crisis prolongs
\(^{9}\) Diversification possible at least six months after the start of crisis
\(^{10}\) Only possible during normal market condition
\(^{11}\) Only possible for investment horizons of 128–256 days
\(^{12}\) Possible during normal times for investment horizons within 4 days
\(^{13}\) Only possible during normal market condition
\(^{14}\) Only possible during normal market condition
\(^{15}\) Only possible during normal market condition
\(^{16}\) Only possible during normal market and crisis recovery conditions
\(^{17}\) Only possible during normal market condition
\(^{18}\) Only possible during normal market condition
\(^{19}\) Only possible for investment horizons of 128–256 days
\(^{20}\) Only possible during normal market condition

Back to article page