Bitcoin Beats Stocks, Gold, Bonds in Risk-Adjusted Returns: Research

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Bitcoin has fared better than the world’s largest hedge fund based on its risk-adjusted returns, reveals Messari in its recent research note. The data analysis platform noted that Bitcoin’s Sharpe Ratio — a barometer that measures an investment’s performance with a risk-free asset (such as US treasuries), adjusting for its risk — is ‘3.’ In comparison, Bridgewater has a Sharpe Ratio of 1.48 for its “all-weather” portfolio that contains cash, stocks, bonds, and gold. Bitcoin Growth Experts agree that a Sharpe Ratio reading of more than ‘1’ for an asset shows its potential to perform well in all market conditions. Therefore, stocks and real estates look stronger for their lower correlation with traditional assets, primarily metal, and bonds. The chart below illustrates the same. Bitcoin has the highest Sharpe Ratio than traditional assets. Source: Messari Mira Christanto, the Messari report author, noted that Bitcoin had shown the lowest correlation compared…

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