Sharpe Ratio indicates Bitcoin is the best horse in the race

quick take

  • The Sharpe ratio measures the risk-adjusted return that takes into account the volatility of each asset.
  • We examined the asset Sharpe ratio over time. Calculate the rolling Sharpe ratio for each asset using a rolling window of 12 months.
  • A higher Sharpe ratio indicates better risk-adjusted performance.
  • Looking at five popular assets, Bitcoin produces the highest returns based on 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)

The Post Sharpe Ratio shows that Bitcoin is the best horse in the race. First appeared in CryptoSlate.

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