Achieving Portfolio Diversification through Cryptocurrencies in European Markets

Background: Cryptocurrencies represent a specific technological innovation in financial markets that keeps getting more and more popular among investors around the world. Given the specific characteristics of the cryptocurrencies, this paper examines the possibility of their use as a diversification instrument. Objectives: This paper examines the direction and strength of the relationship between the selected cryptocurrencies and important financial indicators on the European Union market. Since cryptocurrencies are a novelty in the financial system, the empirical literature in this area is rather scarce. Methods/Approach: In order to assess diversification properties of cryptocurrencies for European traders, a comprehensive econometric analysis was carried out. The first part of the analysis refers to the estimation of the multivariate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model, whereas the second part focuses on wavelet transforms. Results: Bitcoin and Ripple proved as a possible diversification instrument on most of the observed European markets since corresponding coefficients of unconditional correlation are negative. Conclusions: The relationship between the value of the cryptocurrencies and selected indices is generally very weak and slightly negative, indicating that some cryptocurrencies can serve as a means of diversification. However, investors need to take into account the extreme volatility, exhibited in all existing cryptocurrencies

Analysis of Propane Thermal State in Underground Tanks Taking Into Consideration Design Issues

The paper presents an analysis of annual variations of temperature and the corresponding saturation pressure of saturated liquid propane in a mounded cylindrical tank used for liquefied petroleum gas (LPG) storage. A mathematical model has been established based on a finite volume method. Boundary and initial conditions have been assumed for the Croatian climate. Simulations have been performed using the commercial CFD (Computational Fluid Dynamic) code on the representative numerical example. Analysis results have been presented through diagrams. It has been pointed out that the present regulation and practice for such tanks defines too high a design pressure of 1.64 MPa for the Croatian climate and that pressure of 1.2 MPa is sufficient to ensure proper design of such vessels. Significant simplifications and savings in production process can be achieved by changing the unnecessarily high design pressure

OPTIMAL INVESTMENT OF THE SECOND PENSION PILLAR ASSETS IN THE REPUBLIC OF CROATIA

Hrvatski mirovinski sustav karakterizira duga tradicija i brojni problemi koji dovode održivost mirovinskog sustava u pitanje. Nedostatak sredstava za isplatu mirovina predstavlja zajedno s trendom starenja stanovništva ključni problem mirovinskog sustava. Obvezni mirovinski fond koji se temelji na kapitaliziranoj individualnoj štednji predstavlja drugi mirovinski stup, čija je struktura ulaganja glavna tema ovoga rada. Godišnji prinosi obveznih mirovinskih fondova u posljednjih nekoliko godina iznosili su otprilike 2% do 5% godišnje. Najveće prosječne prinose ostvaruje fond A, a najmanje fond C. Najveći udio u ukupnoj imovini fondova ima fond kategorije B. U ovom se radu pomoću metoda matematičkog programiranja otkriva optimalna struktura portfelja mirovinskih fondova za sve tri kategorije ulaganja. Rješava se dualni problem maksimizacije očekivanog prinosa portfelja i minimizacije rizika portfelja pomoću linearnog i kvadratnog programiranja. Analiza također pokazuje u kojoj su mjeri optimalni portfelji uvjetovani zakonskim ograničenjima.The Croatian pension system is characterized by a long tradition and numerous problems that lead to an unsustainable system. Inability to collect enough resources to finance current pensioners together with the aging population trend make the key problem of the pension system. The second pension pillar includes mandatory pension funds based on capitalized individual savings whose investment structure is the main topic of this paper. The annual returns of mandatory pension funds in the last few years amounted to approximately 2-5% per annum. The highest average yields were achieved in the Fund A, and the smallest, as expected, in C. The largest share of pension funds’ total assets is allocated to the Fund B. This paper uses methods of mathematical programming to reveal the optimal portfolio structure of pension funds for all three fund categories. The dual problem of maximizing the expected portfolio yield and variance minimization is solved by linear and quadratic programming. The analysis also shows the extent to which optimal portfolios are subject to legal constraints

OPTIMAL INVESTMENT OF THE SECOND PENSION PILLAR ASSETS IN THE REPUBLIC OF CROATIA

Hrvatski mirovinski sustav karakterizira duga tradicija i brojni problemi koji dovode održivost mirovinskog sustava u pitanje. Nedostatak sredstava za isplatu mirovina predstavlja zajedno s trendom starenja stanovništva ključni problem mirovinskog sustava. Obvezni mirovinski fond koji se temelji na kapitaliziranoj individualnoj štednji predstavlja drugi mirovinski stup, čija je struktura ulaganja glavna tema ovoga rada. Godišnji prinosi obveznih mirovinskih fondova u posljednjih nekoliko godina iznosili su otprilike 2% do 5% godišnje. Najveće prosječne prinose ostvaruje fond A, a najmanje fond C. Najveći udio u ukupnoj imovini fondova ima fond kategorije B. U ovom se radu pomoću metoda matematičkog programiranja otkriva optimalna struktura portfelja mirovinskih fondova za sve tri kategorije ulaganja. Rješava se dualni problem maksimizacije očekivanog prinosa portfelja i minimizacije rizika portfelja pomoću linearnog i kvadratnog programiranja. Analiza također pokazuje u kojoj su mjeri optimalni portfelji uvjetovani zakonskim ograničenjima.The Croatian pension system is characterized by a long tradition and numerous problems that lead to an unsustainable system. Inability to collect enough resources to finance current pensioners together with the aging population trend make the key problem of the pension system. The second pension pillar includes mandatory pension funds based on capitalized individual savings whose investment structure is the main topic of this paper. The annual returns of mandatory pension funds in the last few years amounted to approximately 2-5% per annum. The highest average yields were achieved in the Fund A, and the smallest, as expected, in C. The largest share of pension funds’ total assets is allocated to the Fund B. This paper uses methods of mathematical programming to reveal the optimal portfolio structure of pension funds for all three fund categories. The dual problem of maximizing the expected portfolio yield and variance minimization is solved by linear and quadratic programming. The analysis also shows the extent to which optimal portfolios are subject to legal constraints

Analysis of Propane Thermal State in Underground Tanks Taking Into Consideration Design Issues

The paper presents an analysis of annual variations of temperature and the corresponding saturation pressure of saturated liquid propane in a mounded cylindrical tank used for liquefied petroleum gas (LPG) storage. A mathematical model has been established based on a finite volume method. Boundary and initial conditions have been assumed for the Croatian climate. Simulations have been performed using the commercial CFD (Computational Fluid Dynamic) code on the representative numerical example. Analysis results have been presented through diagrams. It has been pointed out that the present regulation and practice for such tanks defines too high a design pressure of 1.64 MPa for the Croatian climate and that pressure of 1.2 MPa is sufficient to ensure proper design of such vessels. Significant simplifications and savings in production process can be achieved by changing the unnecessarily high design pressure

OPTIMAL INVESTMENT OF THE SECOND PENSION PILLAR ASSETS IN THE REPUBLIC OF CROATIA

Hrvatski mirovinski sustav karakterizira duga tradicija i brojni problemi koji dovode održivost mirovinskog sustava u pitanje. Nedostatak sredstava za isplatu mirovina predstavlja zajedno s trendom starenja stanovništva ključni problem mirovinskog sustava. Obvezni mirovinski fond koji se temelji na kapitaliziranoj individualnoj štednji predstavlja drugi mirovinski stup, čija je struktura ulaganja glavna tema ovoga rada. Godišnji prinosi obveznih mirovinskih fondova u posljednjih nekoliko godina iznosili su otprilike 2% do 5% godišnje. Najveće prosječne prinose ostvaruje fond A, a najmanje fond C. Najveći udio u ukupnoj imovini fondova ima fond kategorije B. U ovom se radu pomoću metoda matematičkog programiranja otkriva optimalna struktura portfelja mirovinskih fondova za sve tri kategorije ulaganja. Rješava se dualni problem maksimizacije očekivanog prinosa portfelja i minimizacije rizika portfelja pomoću linearnog i kvadratnog programiranja. Analiza također pokazuje u kojoj su mjeri optimalni portfelji uvjetovani zakonskim ograničenjima.The Croatian pension system is characterized by a long tradition and numerous problems that lead to an unsustainable system. Inability to collect enough resources to finance current pensioners together with the aging population trend make the key problem of the pension system. The second pension pillar includes mandatory pension funds based on capitalized individual savings whose investment structure is the main topic of this paper. The annual returns of mandatory pension funds in the last few years amounted to approximately 2-5% per annum. The highest average yields were achieved in the Fund A, and the smallest, as expected, in C. The largest share of pension funds’ total assets is allocated to the Fund B. This paper uses methods of mathematical programming to reveal the optimal portfolio structure of pension funds for all three fund categories. The dual problem of maximizing the expected portfolio yield and variance minimization is solved by linear and quadratic programming. The analysis also shows the extent to which optimal portfolios are subject to legal constraints

Prediktivno upravljanje elektromotornim pogonom s elastičnošću i zračnošću u prijenosnom mehanizmu zasnovano na neizrazitom modelu procesa

Control strategy based on generalized predictive controller (GPC) is proposed for control of electrical drives with transmission elasticity and backlash. Takagi-Sugeno fuzzy model is used for identification of the two-mass mechanical system with elastic transmission and backlash with negligible friction. It is assumed that only measurement at the load side is available. Since GPC controller requires linear process model, Takagi-Sugeno fuzzy model is linearized by means of instantaneous linearization in each sample instant. This control strategy is then compared to the classical GPC based on linear ARX model by computer simulations and experimentally on a laboratory model of the electrical drive with transmission elasticity and backlash.Predložena je strategija upravljanja elektromotornim pogonom s elastičnošću i zračnosću u prijenosnom mehanizmu zasnovana na primjeni poopćenog prediktivnog regulatora (GPC). Neizraziti model prema Takagiju i Sugenu primijenjen je za identifikaciju dvomasenog mehaničkog sustava s elastičnim prijenosnim mehanizmom, zračnošću i zanemarivim trenjem. Pretpostavlja se da je dostupno samo mjerenje na strani tereta. Kako poopćeni prediktivni regulator (GPC) zahtijeva linearni model za proračun optimalnog upravljačkog signala, neizraziti model prema Takagiju i Sugenu linearizira se primjenom trenutačne linearizacije u svakom koraku uzorkovanja. Ova strategija upravljanja uspoređena je potom s klasičnim poopćenim prediktivnim regulatorom zasnovanim na linearnom ARX modelu, simulacijom i eksperimentalno na laboratorijskom modelu elektromotornog pogona s elastičnošću i zračnosću u prijenosnom mehanizmu

Adhesion and anticorrosive properties of DTM coating as related to primer coating

Velika zastupljenost čelika u izgradnji objekata i infrastrukture danas u svijetu uzrokuje velike troškove zbog osjetljivosti čelika na koroziju. Kako bi se smanjili troškovi zaštite čeličnih konstrukcija od korozije, ulažu se veliki napori u razvijanje novih tehnologija kojima se želi smanjiti vrijeme rada i produžiti vijek antikorozivne zaštite. Uzimajući u obzir sve češću primjenu “direct to metal” (DTM) sustava za antikorozivnu zaštitu čeličnih konstrukcija, u radu je ispitana i uspoređena prionjivost ovog sustava sa sustavima s temeljnim premazom. Ispitivanja su provedena na tri tipa sustava antikorozivne zaštite.High worldwide prevalence of steel in the construction of buildings and infrastructure is associated with high costs that are due to the sensitivity of steel to corrosion. To reduce the steel structure corrosion protection costs, great efforts are currently made to develop new technologies that would reduce working time and extend service life of corrosion protection systems. Due to an increasing use of the “direct to metal” (DTM) system for corrosion protection of steel structures, this system was tested in the scope of this study and compared with the systems involving the use of primer coating. The tests were carried out on three types of corrosion protection systems

ANALYSES OF THE RUNOFF REGIMES OF THE DRAVA RIVER AND KRKA RIVER

U ovom radu je provedena hidrološka analiza rijeke Drave i Krke koja obuhvaća osnovnu statističku obradu podataka. Ujedno je analiziran režim otjecanja koristeći dvije metode: Pardé-ove modulne koeficijente i krivulje trajanja u modulnim koeficijentima. U sklopu hidrološke analize promatrani su recesijski dijelovi hidrograma primjenom Mailletove formule. Dobiveni rezultati su međusobno uspoređeni. Podaci koji su korišteni u analizi su protoci dobiveni iz DHMZ-a. Promatrano razdoblje za obje rijeke je od 2002. do 2010.god.In this study, the Drava and the Krka rivers were performed by hydrological analysis, which includes the basic statistical data. It was analyzed regime runoff also, using two methods: Pard's modular ratios and duration curves in modular coefficients. As part of the hydrological analysis there were observed recessionhydrograph components using the Maillet formula. The obtained results are compared. The data used in the analysis are the flows obtained by DHMZ. The observed period for both rivers is 2002. - 2010