Crypto Currency Portfolio Investment Return Calculator (Excel XLSX)

A Cryptocurrency Portfolio Investment Return Calculator is crucial for crypto investors. It computes returns, analyzes portfolio performance, and aids decision-making for asset allocation. This tool supports risk management, allowing investors to optimize their cryptocurrency holdings for better returns. Accurate calculations empower investors to make informed decisions, adapt to market dynamics, and ensure a balanced and profitable crypto portfolio. It enhances financial stability, attracts investors, and supports long-term growth by aligning investment strategies with market trends. This calculator is indispensable for both seasoned and novice crypto investors, ensuring prudent financial planning and maximizing returns in the volatile crypto market.

PURPOSE OF MODEL
User-friendly Excel model to calculate the expected value and return for a portfolio of crypto currency investments using Monte Carlo simulation analysis. The model allows the user to specify the crypo currency investment holdings (up to 15 different currency holdings), expected return, expected standard deviation and the investment period to calculate a distribution of the expected total return and investment balance at the end of the investment period using Monte Carlo simulation.

The model enables the user to automatically download historic prices for each crypto currency holding to help determine / sense-check key projection assumptions such as the standard deviation and investment return.

The model follows best practice financial modelling principles and includes instructions, checks and input validations

KEY OUTPUTS
The key outputs include:
•  Distribution chart of investment balances at end of investment period;
•  Distribution chart of the total investment return over the investment period;
•  Chart showing investment holding breakdown for a single iteration across investment period;
•  Key results/ratios including average investment balance, average investment return, historic average return and historic standard deviation;
•  Table showing total investment balance, investment return and additions/redemptions across key percentiles
•  Table showing average development of investment balance over projection period.

KEY INPUTS
The key inputs include
•  Currency
•  Latest year and week
•  Portfolio composition (Tickers and current investment balance by holding)
•  Expected standard deviation
•  Expected average return
•  Weekly pricing data for past years

MODEL STRUCTURE
The model contains, 5 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user is the input tab ('i_Inputs'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in ‘o_Results'

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
•  The model allows for a maximum remaining investment period of 5 years;
•  The model uses Monte Carlo analysis to simulate the investment return and balances for up to 1,000 iterations;
•  Portfolio composition, currency, calculation year are fully customisable;
•  The model includes instructions, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.