Market Data
Sharpe Ratio
A risk-adjusted return metric defined as excess return over the risk-free rate divided by the volatility of returns. Higher values imply more return per unit of risk (all else equal).
Why it matters
Sharpe ratio helps compare preferred series on a risk-adjusted basis—useful when two securities have similar yields but very different realized volatility or drawdowns.
How we calculate or source it
Conceptually: (return − risk‑free rate) ÷ standard deviation of returns, over a specified lookback window and sampling frequency. On BitcoinQuant, Sharpe values reflect our preferred-equity historical return series and the risk‑free rate assumption shown on the dashboard.