Are there any digital assets that have shown a Sharpe ratio below 1 in the past year?

5 answers

• Chris SJul 01, 2020 · 5 years ago
  Yes, 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.
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• Raifuddin AhmedJul 23, 2022 · 3 years ago
  Absolutely! 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.
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• Anshika RajApr 27, 2021 · 4 years ago
  Certainly! 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.
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• LyraIncMay 21, 2024 · a year ago
  Yes, 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.
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• DamirHadzicJan 25, 2024 · 2 years ago
  Certainly! 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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