# Topological Data Analysis for Portfolio Management of Cryptocurrencies

arXiv: https://arxiv.org/abs/2009.03362 · HTML: https://mlsanity.com/paper/2009.03362/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 7 Sep 2020.

## Built on by (most cited first, 1 of 1)

- [Portfolio Selection via Topological Data Analysis](https://mlsanity.com/paper/2308.07944/) (2023)

## Abstract (arXiv)

Portfolio management is essential for any investment decision. Yet, traditional methods in the literature are ill-suited for the characteristics and dynamics of cryptocurrencies. This work presents a method to build an investment portfolio consisting of more than 1500 cryptocurrencies covering 6 years of market data. It is centred around Topological Data Analysis (TDA), a recent approach to analyze data sets from the perspective of their topological structure. This publication proposes a system combining persistence landscapes to identify suitable investment opportunities in cryptocurrencies. Using a novel and comprehensive data set of cryptocurrency prices, this research shows that the proposed system enables analysts to outperform a classic method from the literature without requiring any feature engineering or domain knowledge in TDA. This work thus introduces TDA-based portfolio management of cryptocurrencies as a viable tool for the practitioner.