Researcher ORCID Identifier
https://orcid.org/0000-0002-7002-488X
Graduation Year
2021
Date of Submission
5-2021
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Fan Yu
Terms of Use & License Information
Rights Information
2021 Samuel Y H Soo
Abstract
This thesis seeks to identify if collectible sneakers can provide diversification benefits to an investor’s portfolio. Using data from a global collectible sneaker marketplace, StockX, I constructed an index to compare it with other traditional assets, including the S&P 500 index and 5-year US Treasury Bills. By calculating key metrics including expected returns, volatility, and correlation, I analyzed the risk-return characteristics of the collectible sneaker asset class compared to other traditional asset classes. From the data analysis I performed, I found that collectible sneakers did not outperform returns significantly compared to traditional asset classes, but had low correlations, which provides investors with diversification benefits. I also found that an investor’s knowledge on sneakers and sneaker trends were also a significant determining factor in improving the expected returns from investing in collectible sneakers.
Recommended Citation
Soo, Samuel, "Diversifying Investment Portfolios with Collectible Sneakers: Expected Returns and Benefits of Diversification" (2021). CMC Senior Theses. 2746.
https://scholarship.claremont.edu/cmc_theses/2746
Included in
Fashion Business Commons, Finance Commons, Finance and Financial Management Commons, Portfolio and Security Analysis Commons
