Which ratio, the Sharpe ratio or the Treynor ratio, is more suitable for assessing the performance of cryptocurrencies?

1 answers

• Nov 27, 2021 · 3 years ago
  In the world of cryptocurrencies, assessing performance is crucial for investors. When it comes to choosing between the Sharpe ratio and the Treynor ratio, it ultimately depends on the investor's priorities. The Sharpe ratio takes into account the risk-adjusted return, which is important for evaluating the overall performance of an investment. On the other hand, the Treynor ratio considers the systematic risk, which is particularly relevant for assessing the performance of cryptocurrencies in relation to the market. Both ratios have their strengths and limitations, and it is advisable to consider multiple factors and indicators when evaluating the performance of cryptocurrencies.
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