Sharpe Ratio Definition

Sharpe Ratio is a market data metric used in Bitcoin treasury analysis.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).

What is 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).

Sharpe Ratio Definition

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).

Sharpe Ratio Meaning

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).

How to calculate Sharpe Ratio

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.

Why does Sharpe Ratio matter?

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.

What does Sharpe Ratio mean?

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).

Sharpe Ratio explained

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).

Sharpe Ratio formula

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.

Sharpe Ratio market data

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).