Cardano (ADA) Sharpe ratio until January 8, 2022

Cardano's Sharpe ratio in January 2022 was below that of the S&P500, reaching a value that was considered to be below average. This particular ratio gives investors an idea on how their investments perform in the long run, and is calculated by substracting risk-free rate from the expected return of a particular asset. The higher the Sharpe ratio, the more the extra risk is actually paying off - as returns are above-average. In the case of Cardano, the ratio mostly hit between values below one after October 2021 which are considered to be "bad" - although before that the return on investment was significantly higher. A value of zero means the asset in consideration is risk-free, which may be both good - as you are not losing out on money - or bad - as the extra risk taken may not be worth the effort.