Integration Among the Socially Responsible Investment, Green, Dirty, and Energy Cryptocurrencies: A Portfolio Diversification Perspective

The paper investigates the association between various green, dirty, energy cryptocurrencies and socially responsible investment markets.

The purpose of the study is to identify the potential benefits of portfolio diversification for socially responsible investment markets from green, dirty and energy cryptocurrencies using three alternative methodologies for portfolio construction (1) the equally weighted portfolio, (2) the least variance portfolio, and (3) the maximum Sharpe portfolio thus contrasting it with the alternative of home investing.

The research Methodology used in the study are, correlation analysis, used to investigate short-term association, and subsequently, network analysis, to investigate the long-term connectedness between the socially conscious investment markets and the different green, filthy, and energy cryptocurrencies.

The study is unique to focus on the interlinkages of socially responsible investment and the green, dirty and energy cryptocurrencies while evaluating the possible portfolio diversification benefits.

The results of the study suggest that the investors in all other SRI assets, except green bonds, can benefit from the least variance technique. The maximum Sharpe portfolio is beneficial to all investors who make socially conscious investments.

The study has consequences for asset allocation and investment decisions for investors and portfolio managers.

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