Fidelity Global Macro Director: Bitcoin Sharpe Ratio has reached +0.97 in the past five years, higher than the S&P 500 Index
Jurrien Timmer, the global macro director of Fidelity, stated that the Bitcoin Sharpe Ratio has reached +0.97 in the past five years, which is worth paying attention to. This value exceeds other investment categories such as the SP 500 Index (0.74) and the US 60/40 investment portfolio (0.73), indicating that despite the volatility of the digital asset market, the risk-return of Bitcoin has been in a very balanced state over the past five years, and the returns obtained are roughly proportional to the risks borne by investors. The Sharpe Ratio, also known as the Sharpe Index, is designed to calculate how much excess return an investment portfolio will generate for each unit of total risk it bears. The ratio is based on the concept of the Capital Allocation Line (CAL) and is the most common measure ratio in the market. When all assets in the investment portfolio are risky assets, the Sharpe Ratio is applicable. The Sharpe Index represents how many excess returns an investor can get for each additional unit of risk they take. If it is greater than 1, it means that the fund's return rate is higher than the volatility risk; if it is less than 1, it means that the fund's operational risk is greater than the return rate.
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