Bitcoin Cash vs Litecoin (BCH vs LTC) 2026: Crypto Returns, Risk & Volatility

Q: Which is a better investment: BCH or LTC?

Over the past year, BCH looks like the better investment: it had higher total return (BCH +28.1% vs LTC -33.6%) and a higher Sharpe ratio (BCH 0.64 vs LTC -0.33). On risk, LTC was less volatile (LTC 67.2% vs BCH 67.4%), BCH had a smaller max drawdown (BCH -35.5% vs LTC -60.9%), and BCH had less severe losses on the worst 5% of days (Expected Shortfall of BCH -7.14% vs LTC -8.22%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: BCH or LTC?

Over the past year, BCH outperformed LTC. BCH returned +28.1% compared with LTC’s -33.6%. BCH had the better risk-adjusted return, with a Sharpe ratio of 0.64 versus LTC’s -0.33. LTC was less volatile than BCH, but BCH had a smaller max drawdown than LTC.

Total Return

BCH +28.1%

LTC -33.6%

Sharpe Ratio

BCH 0.64

LTC -0.33

Annualized Volatility

BCH 67.4%

LTC 67.2%

Max Drawdown

BCH -35.5%

LTC -60.9%

Metric winners: Total Return: BCH; Sharpe Ratio: BCH; Annualized Volatility: LTC (less volatile); Max Drawdown: BCH (smaller drawdown).

BCH Total Return

↑ +28.1%

LTC Total Return

↓ -33.6%

Relative Performance of BCH vs LTC (Normalized to 100)

BCH LTC

Normalized to 100 at start date for comparison

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Key Takeaways

Total Return: BCH delivered a +28.1% total return, while LTC returned -33.6% over the same period. BCH outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): LTC had a negative Sharpe (-0.33) while BCH was positive (0.64), indicating BCH had meaningfully better risk-adjusted performance in this period.
Volatility (Annualized): BCH was more volatile, with 67.4% annualized volatility, versus 67.2% for LTC.
Maximum Drawdown: BCH's maximum drawdown was -35.5%, while LTC experienced a deeper drawdown of -60.9%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), BCH's VaR was -4.88% and its Expected Shortfall (CVaR) was -7.14%; LTC's were -5.35% and -8.22%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: BCH 0.14 vs LTC -0.71. Excess kurtosis: BCH 1.63 vs LTC 7.79. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): BCH 7/15, LTC 8/9. Worst day: BCH -12.52% (2026-02-22) vs LTC -21.97% (2025-10-10). Best day: BCH +13.59% (2026-02-05) vs LTC +17.12% (2025-11-07).
Risk ratios: Sortino - BCH: 0.98 vs. LTC: -0.47 , Calmar - BCH: 0.79 vs. LTC: -0.55 , Sterling - BCH: 1.20 vs. LTC: -1.18 , Treynor - BCH: 0.47 vs. LTC: -0.15 , Ulcer Index - BCH: 15.87% vs. LTC: 35.29%

Investment Comparison

If you invested $10,000 in each asset on April 24, 2025:

BCH $12,809.62 +28.1%

LTC $6,643.12 -33.6%

Difference: $6,166.5 (BCH ahead)

Bitcoin Cash vs Litecoin Performance Over Time

Metric	BCH	LTC
30 Days	-3.7%	-1.1%
90 Days	-23.1%	-17.7%
180 Days	-10.2%	-42.2%
1 Year	28.1%	-33.6%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Bitcoin Cash vs Litecoin Correlation

Average Correlation

strongly correlated

0.60

Current (30-day) 0.61

30-day rolling range +0.22 to +0.90

Bitcoin Cash and Litecoin are strongly correlated over the past year. With a correlation of 0.60, these assets tend to move together, limiting diversification benefits.

For portfolio construction, this strong correlation means holding both BCH and LTC provides limited risk reduction — they're likely to decline together in downturns.

Metric	Value
Current (30-day)	0.61
Average (full period)	0.60
Minimum (30-day rolling)	0.22
Maximum (30-day rolling)	0.90

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement. Current, minimum, and maximum figures are 30-day rolling correlations on shared daily returns.

Drawdown

Maximum Drawdown

BCH

-35.5%

LTC

-60.9%

Bitcoin Cash experienced its maximum drawdown of -35.5% from 2026-01-03 to 2026-04-11. It has not yet recovered to its previous peak.

Litecoin experienced its maximum drawdown of -60.9% from 2025-08-13 to 2026-02-23. It has not yet recovered to its previous peak.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Bitcoin Cash vs Litecoin Volatility (BCH vs LTC)

BCH Volatility

67.4%

±3.53% 1-day vol

LTC Volatility

67.2%

±3.52% 1-day vol

1-day volatility (1σ)

BCH

±3.53%

LTC

±3.52%

Bitcoin Cash's 67.4% annualized volatility translates to about ±3.53% one-standard-deviation daily volatility.

Litecoin's 67.2% annualized volatility translates to about ±3.52% one-standard-deviation daily volatility.

BCH had the wider volatility profile over this window. That means its day-to-day return distribution was broader; LTC was calmer, but lower volatility does not by itself mean better returns.

Treat the ± daily figure as a one-standard-deviation estimate from historical returns, not a forecast or expected absolute daily move. For context, 15-18% annualized volatility is roughly ±1% one-standard-deviation daily volatility.

Risk-adjusted ratios

Sharpe Ratio of BCH and LTC

Sharpe Ratio: BCH vs. LTC

Return per total volatility

Sharpe gives us excess return per unit of risk. Upside and downside volatility both count as risk.

Higher is better

excess return / total volatility

Formula

\displaystyle \mathrm{Sharpe} = \frac{\mathbb{E}[R] - R_f}{\sigma_R}

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. LTC had a negative Sharpe (-0.33) while BCH was positive (0.64), indicating BCH had meaningfully better risk-adjusted performance in this period.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of BCH and LTC

Sortino Ratio: BCH vs. LTC

Return per downside volatility

Sortino keeps the return-over-risk idea, but only returns below the target rate count as volatility.

Higher is better

excess return / downside volatility

Formula

\displaystyle \mathrm{Sortino} = \frac{\mathbb{E}[R] - R_f}{\sigma_{\mathrm{down}}}

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). BCH had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: BCH 44.0% vs LTC 48.1%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of BCH and LTC

Calmar Ratio: BCH vs. LTC

CAGR per worst drawdown

Calmar compares CAGR against the single deepest peak-to-trough loss over the period.

Higher is better

CAGR / max drawdown

Formula

\displaystyle \mathrm{Calmar} = \frac{\mathrm{CAGR}}{|\mathrm{MaxDD}|}

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. BCH posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of BCH and LTC

Sterling Ratio: BCH vs. LTC

Return per average drawdown

Sterling smooths the drawdown penalty by using average drawdown events instead of only the worst one.

Higher is better

excess annual return / average deep drawdown

Formula

\displaystyle \mathrm{Sterling} = \frac{\mathrm{CAGR} - R_f}{\overline{D}_{>10\%}}

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). BCH posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of BCH and LTC

Treynor Ratio: BCH vs. LTC

Excess return per market beta

Treynor divides excess annualized return by beta — the sensitivity of the asset to broad-market moves. The slope shown is each asset’s beta vs SPY.

Higher is better

excess return / market beta

Formula

\displaystyle \mathrm{Treynor} = \frac{\mathbb{E}[R] - R_f}{\beta}

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. BCH posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of BCH and LTC

Ulcer Index: BCH vs. LTC

Drawdown pain

Ulcer Index is a risk index, not a return-over-risk ratio. Lower means smaller and shorter drawdowns.

Lower is better

root-mean-square drawdown

Formula

\displaystyle \mathrm{UI} = \sqrt{\mathbb{E}[D_t^2]}

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. BCH had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Bitcoin Cash vs. Litecoin

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Tail Risk & Distribution Shape: BCH vs. LTC (1-Year)

Actual daily return tails

The bars are real daily log-return observations from the article window. Darker bars are observations at or beyond each asset’s 5% VaR cutoff.

Observed returns

VaR marks the 5th percentile loss cutoff; Expected Shortfall averages the observations beyond that cutoff.

Formula

\displaystyle \mathrm{VaR}_{5\%}=Q_{0.05}(r_t),\quad \mathrm{ES}_{5\%}=\mathbb{E}[r_t\mid r_t\le \mathrm{VaR}_{5\%}]

Metric (1-Year)	BCH	LTC
5% VaR (daily log return)	-4.88%	-5.35%
5% Expected Shortfall (CVaR)	-7.14% (worst 19 days)	-8.22% (worst 19 days)
Skew	0.14	-0.71
Excess kurtosis	1.63	7.79
2σ tail days (down / up)	7 / 15	8 / 9
Worst day	-12.52% (2026-02-22)	-21.97% (2025-10-10)
Best day	+13.59% (2026-02-05)	+17.12% (2025-11-07)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=364). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

Downside co-move map: BCH vs. LTC (2σ)

Shared-close daily returns

Dots mark actual downside days: asset-colored dots are one-sided downside moves, and red dots are joint downside days. Grey dots add sampled shared-return context when available. The shaded lower-left zone shows where both BCH and LTC crossed their own 2σ downside threshold.

2σ

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both BCH and LTC had a big down day (2σ)

Date (interval)	BCH	LTC
2025-08-25	-6.80%	-7.50%
2025-10-10	-10.33%	-21.97%
2026-01-30	-10.78%	-10.40%
2026-02-04	-11.85%	-11.64%

Days when BCH had a big down day

Date (interval)	BCH	LTC
2025-08-25	-6.80%	-7.50%
2025-10-10	-10.33%	-21.97%
2025-10-17	-6.74%	-1.66%
2025-11-19	-7.25%	-2.97%
2026-01-30	-10.78%	-10.40%
2026-02-04	-11.85%	-11.64%
2026-02-22	-12.52%	-3.27%

Days when LTC had a big down day

Date (interval)	BCH	LTC
2025-05-30	-2.37%	-8.27%
2025-08-14	-3.67%	-7.30%
2025-08-25	-6.80%	-7.50%
2025-09-22	-4.43%	-7.28%
2025-10-10	-10.33%	-21.97%
2025-11-03	-5.84%	-12.13%
2026-01-30	-10.78%	-10.40%
2026-02-04	-11.85%	-11.64%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Full Comparison of Bitcoin Cash vs. Litecoin (1-Year)

Metric	BCH	LTC
Total Return	+28.1%	-33.6%
Annualized Volatility	67.4%	67.2%
Sharpe Ratio	0.64	-0.33
Sortino Ratio	0.98	-0.47
Calmar Ratio	0.79	-0.55
Sterling Ratio	1.20	-1.18
Treynor Ratio	0.47	-0.15
Ulcer Index	15.87%	35.29%
Max Drawdown	-35.5%	-60.9%
Avg Correlation to S&P 500	0.27	0.36
5% VaR (daily log return)	-4.88%	-5.35%
5% Expected Shortfall (CVaR)	-7.14%	-8.22%
Skew	0.14	-0.71
Excess kurtosis	1.63	7.79
2σ tail days (down / up)	7 / 15	8 / 9

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-04-24 → 2026-04-23 (last shared close).
Rolling correlation sample (shared closes): 335 rolling 30-day values (from 364 shared daily returns).
Annualization (days/year): BCH: 365 days/year; LTC: 365 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

BCH: 4.17% over 2025-04-24 → 2026-04-23.

LTC: 4.17% over 2025-04-24 → 2026-04-23.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

BCH: ≈ -22.7%/yr

LTC: ≈ -22.6%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Bitcoin Cash vs Litecoin: Frequently Asked Questions

Which has higher volatility: BCH or LTC?

BCH showed higher volatility at 67.4% annualized, compared to 67.2% for LTC Over the past year. Higher volatility means larger price swings in both directions.

Does BCH provide diversification when held with LTC?

BCH and LTC are strongly correlated over the past year, with an average correlation of 0.60. This strong correlation limits diversification benefits.

How bad are the worst 5% days for BCH vs LTC?

Over the past year, BCH's 5% VaR was -4.88% and its 5% Expected Shortfall was -7.14% (worst 19 days). LTC's were -5.35% and -8.22% (worst 19 days).

Do BCH and LTC crash together on bad days?

On shared dates (n=364), when LTC has a 2σ down day, BCH also does 50.0% (4/8 days). In the other direction, when BCH has one, LTC also does 57.1% (4/7 days).

Which has better risk-adjusted returns: BCH or LTC?

LTC had a negative Sharpe (-0.33) while BCH was positive (0.64) Over the past year, indicating BCH had meaningfully better risk-adjusted performance.

Can BCH and LTC be combined in a portfolio?

Yes, though allocation sizing matters. Their strong correlation provides limited risk reduction since they tend to move together. BCH's higher volatility (67.4%) means even small allocations can materially impact overall portfolio risk.

Explore our financial glossary

Which is a better investment: BCH or LTC?

Share This Comparison of BCH vs LTC

Relative Performance of BCH vs LTC (Normalized to 100)

Trade BCH or LTC

Key Takeaways

Investment Comparison

Bitcoin Cash vs Litecoin Performance Over Time

Bitcoin Cash vs Litecoin Correlation

Drawdown

Bitcoin Cash vs Litecoin Volatility (BCH vs LTC)

Risk-adjusted ratios

Sharpe Ratio of BCH and LTC

Sharpe Ratio: BCH vs. LTC

Sortino Ratio of BCH and LTC

Sortino Ratio: BCH vs. LTC

Calmar Ratio of BCH and LTC

Calmar Ratio: BCH vs. LTC

Sterling Ratio of BCH and LTC

Sterling Ratio: BCH vs. LTC

Treynor Ratio of BCH and LTC

Treynor Ratio: BCH vs. LTC

Ulcer Index of BCH and LTC

Ulcer Index: BCH vs. LTC

Tail Risk & Distribution Shape (1-Year): Bitcoin Cash vs. Litecoin

Tail Risk & Distribution Shape: BCH vs. LTC (1-Year)

Downside co-moves (2σ) — 1-Year

Downside co-move map: BCH vs. LTC (2σ)

Days when both BCH and LTC had a big down day (2σ)

Days when BCH had a big down day

Days when LTC had a big down day

Full Comparison of Bitcoin Cash vs. Litecoin (1-Year)

Inputs & conventions

Formulas

Bitcoin Cash vs Litecoin: Frequently Asked Questions

Which has higher volatility: BCH or LTC?

Does BCH provide diversification when held with LTC?

How bad are the worst 5% days for BCH vs LTC?

Do BCH and LTC crash together on bad days?

Which has better risk-adjusted returns: BCH or LTC?

Can BCH and LTC be combined in a portfolio?