A new study by 21Shares reveals that integrating Dogecoin (DOGE) into Bitcoin-focused portfolios can significantly enhance returns, highlighting its potential as a diversification tool. The research shows that adding just 1% DOGE to a Bitcoin portfolio boosts annualized gains by an impressive 1.7%. This positive impact is attributed to DOGE’s low correlation with traditional assets and broader market trends. 21Shares’ study analyzed various portfolio strategies, including those incorporating 3% Bitcoin and 1% DOGE, which resulted in demonstrably superior performance compared to a typical 60/40 allocation. This strategy generated higher annualized returns while also improving risk-adjusted performance measured by the Sharpe ratio. While DOGE’s inclusion resulted in a slight increase in volatility, it significantly boosted cumulative returns to a remarkable 40.89%. This study underscores the potential of incorporating Dogecoin into investment strategies for greater diversification and potentially enhanced long-term gains.