Sharpe Ratio indicates Bitcoin is the best horse in the race

The Sharpe Ratio is a measure of risk-adjusted return, which considers each asset's volatility

James Van Straten
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James Van Straten
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Quick Take

  • The Sharpe Ratio measures risk-adjusted return, which considers each asset's volatility.
  • We looked at the Sharpe Ratio of assets over time; we'll calculate the rolling Sharpe Ratio for each asset using a 12-month rolling window.
  • A higher Sharpe Ratio indicates better risk-adjusted performance.
  • Looking at five popular assets, Bitcoin generates the best returns based on the Share Ratio.
  1. Bitcoin: 6344.70%
  2. S&P 500: 241.27%
  3. Nasdaq: 423.21%
  4. TLT: 11.88%
  5. US House Prices: 103.15%
Sharpe ratio: (Source: FRED)
Sharpe ratio: (Source: FRED)
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James Van Straten
James Van Straten
Former Lead Analyst CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

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