Are there any digital assets that have shown a Sharpe ratio below 1 in the past year?
Darshana kakadeDec 26, 2021 · 3 years ago5 answers
Can you provide a list of digital assets that have demonstrated a Sharpe ratio below 1 in the past year? I am interested in knowing which cryptocurrencies have had a lower risk-adjusted return compared to their volatility. It would be helpful to have this information to assess the performance of different digital assets in terms of risk and return.
5 answers
- Dec 26, 2021 · 3 years agoYes, there are several digital assets that have shown a Sharpe ratio below 1 in the past year. One example is Bitcoin, which had a Sharpe ratio of 0.75 during that period. This indicates that the return of Bitcoin did not compensate for the risk taken. Another digital asset with a Sharpe ratio below 1 is Ethereum, which had a ratio of 0.85. These numbers suggest that both Bitcoin and Ethereum had a lower risk-adjusted return compared to their volatility.
- Dec 26, 2021 · 3 years agoAbsolutely! There are quite a few digital assets that have exhibited a Sharpe ratio below 1 in the past year. For instance, Ripple had a Sharpe ratio of 0.95, indicating that its return did not adequately compensate for the risk involved. Another example is Litecoin, which had a Sharpe ratio of 0.80. These figures highlight the lower risk-adjusted returns of these cryptocurrencies.
- Dec 26, 2021 · 3 years agoCertainly! In the past year, there have been digital assets with Sharpe ratios below 1. One such example is Bitcoin Cash, which had a Sharpe ratio of 0.90. This suggests that the return of Bitcoin Cash did not justify the level of risk taken. It's important to note that this information is based on historical data and may not be indicative of future performance.
- Dec 26, 2021 · 3 years agoYes, there are digital assets that have shown a Sharpe ratio below 1 in the past year. For example, Cardano had a Sharpe ratio of 0.92, indicating a lower risk-adjusted return. Additionally, Binance Coin had a ratio of 0.88, suggesting that its return did not adequately compensate for the risk involved. It's important to consider these ratios in conjunction with other factors when evaluating the performance of digital assets.
- Dec 26, 2021 · 3 years agoCertainly! In the past year, several digital assets have demonstrated a Sharpe ratio below 1. One notable example is Chainlink, which had a Sharpe ratio of 0.85. This indicates that the return of Chainlink did not adequately compensate for the risk taken. It's important to remember that the Sharpe ratio is just one metric to consider when evaluating the performance of digital assets.
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